Legal experts believe that despite the enforcement actions of the SEC against the largest crypto exchange Binance, the platform can operate freely in Hong Kong.

This week, the US Securities and Exchange Commission (SEC) filed a lawsuit against the cryptocurrency exchange Binance, accusing it of trading unregistered securities. In addition, the regulator issued an order to freeze the accounts of the US division of the exchange, Binance.US.

Chinese reporter Colin Wu, alias Wu Blockchain on Twitter, quoted legal expert Gilbert Ng as saying that the regulator is pushing Binance out of the United States through enforcement action. This will encourage the exchange to obtain licenses to operate in other countries and regions, such as Hong Kong.

Ng noted that there are no laws on cryptocurrencies in the US, and this creates uncertainty in terms of industry oversight in the country. Unlike the United States, Hong Kong has already formed a clear structure for the regulation of cryptocurrencies. The lawyer explained that the definition of securities in Hong Kong and the United States is very different. For example, in the US, many crypto assets can be considered securities, but not in Hong Kong. Now in Hong Kong only professional investors are allowed to buy stock tokens.

Bloomberg recently reported that from June 2023, the Hong Kong Securities and Futures Authority (SFC) intends to allow retail investors to trade cryptocurrencies. Hong Kong is indeed striving to become a center for the development of cryptocurrencies and other innovations. In May, the Huobi marketplace already applied to the local government for a license that would allow the exchange to engage in spot trading in the administrative region.

Earlier, Bits.media published a large-scale material about the beginning of the SEC’s systematic war against centralized crypto exchanges, which examines the causes and consequences of the regulator’s actions.