Recent crypto advancements in Hong Kong could provide a “potential tailwind” to lift crypto activity in the East Asian region, which has mainly suffered from a China-wide ban on trading activities since 2019.
Cryptocurrency value received in East Asia amounted to just 8.8% of the world between July 2022 and June 2023, according to an Oct. 2 report from Chainalysis, making it the fifth most active crypto market. However, Chainalysis said Hong Kong’s recent moves could help increase this number.
“A potential tailwind for East Asia comes from Hong Kong, where several crypto initiatives and industry-friendly regulations launched over the past year have fostered bubbling optimism.”
Data from Chainalysis reveals that East Asia’s share of crypto transaction value went from around 30% in 2019 to less than 10% by the second quarter of 2022, after a number of crypto-related bans in China.
Share of cryptocurrency transaction value by region, with Eastern Asia colored in yellow. Source: Chainalysis.
However, Chainalysis said there is “bubbling optimism” in Hong Kong, noting that despite its much smaller population, Hong Kong is already an “extremely active crypto market” by raw transaction volume.
Between July 2022 and June 2023, the market received an estimated $64 billion in crypto, compared to $86.4 billion in China, despite having a population of just 0.5% the size of the mainland.
In comments to Chainalysis, Merton Lam of CryptoHK, an over-the-counter digital asset trading center in Hong Kong, said that cryptocurrencies are becoming a staple in the investment portfolios of many banks, private equity firms and high-net-worth individuals that they work with within the region.
That being said, Dave Chapman of digital asset platform OSL Digital Securities told Chainalysis that while digital assets “are not going away” in East Asia — it’s still too early to say whether Hong Kong’s crypto ambitions mean China has fully embraced the cryptocurrency space.
“The promotion of Hong Kong as a potential crypto hub is not necessarily indicative of the Chinese government’s stance on crypto […] This could be viewed as an exploratory approach to understanding digital assets without loosening mainland policies.”
Speaking to Cointelegraph, Matrixport’s Head of Research and Strategy Markus Thielen said Hong Kong will serve as a “testing ground” for broader cryptocurrency adoption in China.
However, Hong Kong is making a big play in one particular area which other states haven’t managed to capitalize on, says Thielen:
“Crucially, there is a genuine interest to attract the crypto asset management industry which has so far been a missing piece of the puzzle as most crypto firms tend to be labeled as service providers, instead of being the end-user of crypto.”
A Reform UK canvasser who used a racial slur against Rishi Sunak has called himself a “total fool” and said he has learned his lesson.
Footage from an undercover Channel 4 reporter showed Reform campaigner Andrew Parker using a discriminatory term about the prime minister, as well as saying the army should “just shoot” migrants crossing the Channel.
Mr Parker, who was canvassing in Clacton, where Reform leader Nigel Farage is standing, told Sky News the sting operation had “proper taught me a lesson”.
He said: “There’s lots of old people like me who are sick to death of this woke agenda… but on that particular day, I was set up and set up good and proper.
“It’s proper taught me a lesson – I was a total fool.”
More on Nigel Farage
Related Topics:
Pressed on his use of the racial slur, he said he was an “old man” and “I still use old words”.
“There’s no racism at all in it. I am a decent guy to be honest”, he added.
Advertisement
In the Channel 4 report, Mr Parker can be heard using offensive language about the prime minister and also discussing migrants arriving in small boats in Deal, Kent
He said: “Army recruitment – get the young recruits there, with guns, on the f****** beach, target practice. F****** just shoot them.”
Please use Chrome browser for a more accessible video player
1:29
Sunak ‘hurt’ over Reform race row
He also described Islam as a “disgusting cult”.
Mr Farage said he was “dismayed” by the “appalling” comments and has sought to distance himself from the campaigner, saying he was simply “someone who turned up to help” and “has nothing to do with the party”.
He has also used reports Mr Parker was a part-time actor to suggest the incriminating film was a “total set-up” – something Channel 4 has strongly denied.
Mr Parker himself says his volunteering for Reform was separate from his acting job – and claims he was “goaded” into making the comments.
A spokesperson for Channel 4 said: “We strongly stand by our rigorous and duly impartial journalism which speaks for itself.
Image: Farage has tried to distance himself from the comments
“We met Mr Parker for the first time at Reform UK party headquarters, where he was a Reform party canvasser.
“We did not pay the Reform UK canvasser or anyone else in this report. Mr Parker was not known to Channel 4 News and was filmed covertly via the undercover operation.”
The broadcaster’s investigation also caught another canvasser describing the Pride flag as “degenerate” and suggesting members of the LGBT community are paedophiles.
A spokesman for Essex Police said the force is “urgently assessing” the comments “to establish if there are any criminal offences”.
PM ‘hurt and angry’ over racial slur
Mr Sunak reacted furiously to the comments and said Mr Farage had “some questions to answer”.
He said: “My two daughters have to see and hear Reform people who campaign for Nigel Farage calling me an effing P***. It hurts and it makes me angry and I think he has some questions to answer.
“And I don’t repeat those words lightly. I do so deliberately because this is too important not to call out clearly for what it is.
“As prime minister, but more importantly as a father of two young girls, it’s my duty to call out this corrosive and divisive behaviour.”
Unrepentant Farage doubles down
However, Mr Farage was unrepentant when grilled on the row during a BBC Question Time leaders’ special, saying he was “not going to apologise” for the actions of people associated with his party.
Reform UK has faced a series of controversies relating to election candidates saying offensive or racist things.
Asked why his party “attracts racists and extremists”, the former UKIP leader claimed he had “done more to drive the far right out of British politics than anybody else alive” – claiming he took on the British Nationalist Party (BNP) a decade ago.
He also appeared to throw his predecessor Richard Tice under the bus when read racist and xenophobic comments made by Reform candidates, saying he “inherited a start up party” and has “no idea” why the people who said those things had been selected.
Follow Sky News on WhatsApp
Keep up with all the latest news from the UK and around the world by following Sky News