Cryptocurrency exchange offices targeting mainland Chinese users are hampered by uncertainty in Hong Kong’s cryptocurrency regulation.
PwC Lead Cryptocurrency Specialist and Former Chairman of the Hong Kong Fintech Association Henri Arslanian said Hong Kong
stands out among other countries by the number of offline OTC cryptocurrency brokers.
“These are literally physical exchanges for retail cryptocurrency transactions.”
Kelvin Yeung, CEO and Founder of the Hong Kong Digital Asset Exchange (HKD), said that the physical branch of the exchange has been providing cryptocurrency trading services and advising clients since January 2021. He believes that in the future, cryptocurrency exchange offices will become a global trend that will move forward as the industry develops.
“As more private and institutional investors enter the industry and cryptocurrencies become mainstream, there is a trend to open physical exchange offices in parallel with online exchanges.”
This creates more trust between customers and the exchange due to its physical presence in the form of exchange points. Visitors to such exchangers are people from 40 to 70 years old who still hold cash and only trust traditional financial systems. Cryptocurrency stores aren’t just targeting the older generation. In Hong Kong, there are branches of exchanges that specialize in the beautiful half of humanity.
Despite the fact that cryptocurrency exchangers increase user access to assets, there are a number of regulatory risks associated with such establishments. According to Anri Arslanyan, the number of stores in Hong Kong may increase due to the influx of tourists from mainland China interested in buying cryptocurrencies bypassing Chinese legislation. On the other hand, the tightening of the Hong Kong cryptocurrency regulatory framework could lead to the complete closure of these exchange offices.
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