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Hong Kong fintech sector sees 250% blockchain growth since 2022

Hong Kong anticipates the continued growth of its fintech ecosystem, with blockchain, digital assets, distributed ledger technology (DLT) and artificial intelligence playing a central role in shaping its future.

Hong Kong is home to over 1,100 fintech companies. This includes 175 blockchain application or software firms and 111 digital asset and cryptocurrency companies, which marked 250% and 30% increases, respectively, since 2022, according to the Hong Kong Fintech Ecosystem report by InvestHK, a government department overseeing Foreign Direct Investments.

Hong Kong fintech sector sees 250% blockchain growth since 2022

Participants of the Hong Kong Fintech Ecosystem. Source: InvestHK

Exploring deeper fintech revenue streams

The expansive growth of Hong Kong’s Web3 industry is attributed to proactive government policies and an active licensing regime for crypto exchanges or virtual asset trading platforms.

“The revenue for the Hong Kong fintech market is projected to reach US$606 billion by 2032, with an anticipated annual growth rate of 28.5% from 2024 to 2032,” the report stated.

InvestHK, along with other Hong Kong authorities, surveyed 130 fintech companies operating in Hong Kong and identified talent shortage as the top concern in the region, cited by 58.8% of respondents, followed by access to capital at 43.9%. 

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Addressing these hurdles will be critical to sustaining Hong Kong’s momentum to become the top financial hub.

Over 73% of the surveyed fintech companies operate in the AI subsector, far exceeding the 41.5% focused on digital assets and cryptocurrency.

China’s “one country, two systems” policy at play

The InvestHK report highlighted Hong Kong’s advantage in adopting China’s “one country, two systems” policy, allowing it to maintain a free-market economy, unrestricted capital flow and strong global trade relations while benefiting from its proximity to mainland China.

As a result, the Hong Kong government was able to roll out several Web3 innovations, including a licensing regime, spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds, the Hong Kong Monetary Authority’s stablecoin sandbox and tokenized finance and AI integration.

Hong Kong fintech sector sees 250% blockchain growth since 2022

Hong Kong Monetary Authority’s five-step “Fintech 2025” strategy. Source: HKMA

In 2021, the HKMA unveiled a strategy to establish itself as a financial hub by 2025

The strategy included encouraging fintech adoption among banks, increasing Hong Kong’s readiness in issuing central bank digital currencies at both wholesale and retail levels, enhancing the city’s existing data infrastructure and building new ones, increasing the supply of fintech talent and formulating supportive policies for the Hong Kong fintech ecosystem.

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Lawyer hopes Hashflare co-founders can ‘self-deport’ after sentencing

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<div>Lawyer hopes Hashflare co-founders can 'self-deport' after sentencing</div>

<div>Lawyer hopes Hashflare co-founders can 'self-deport' after sentencing</div>

A lawyer representing one of the co-founders of crypto mining service Hashflare has addressed how their criminal case may move forward after the pair received “self-deport” letters from the US Department of Homeland Security (DHS).

In an April 11 filing in the US District Court for the Western District of Washington, Hashflare co-founders Sergei Potapenko and Ivan Turogin reported they had received a DHS letter directing them to “leave the United States” as part of a push by the Trump administration to effect mass deportations. The government letter contradicted orders from Judge Robert Lasnik, who restricted travel for Potapenko and Turogin as part of their bail conditions.

In February, the Estonian nationals pleaded guilty to conspiracy to commit wire fraud as part of a deal with authorities. Between 2015 and 2019, the two were responsible for defrauding Hashflare users out of more than $550 million. They also raised $25 million from investors in 2017, claiming they would establish a digital bank called Polybius. The firm was never created.

Indicted in October 2022, Potapenko and Turogin were arrested and held in Estonia before their extradition to the US in May 2024. Both have been free on bail since July 2024 but could face up to 20 years in prison each at sentencing.

Ordered to leave, forced to stay

“[Potapenko and Turogin each] got letters from DHS to their personal email saying ‘deport immediately,’” Reed Smith partner and defense counsel Mark Bini told Cointelegraph. “It caused some angst because [our client and his co-defendant], their conditions of release include that they comply with the law. And here you have this letter saying if you stay in the country, you’re breaking the law. And of course, their bail conditions say they can’t leave the Seattle area.” 

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The DHS letters ordering certain people to “depart the United States immediately” were reportedly sent to thousands of immigrants who had used the government’s CBP One app to enter the country legally. However, some citizens reported receiving the same letter in US President Donald Trump’s attempts to effect deportations through his office.  

Bini initially thought it was a possibility that the US government was suggesting that Potapenko or Turogin “self-deport” to Estonia after the Justice Department issued a memo hinting it would change its enforcement policy in criminal cases involving crypto. The Hashflare co-founders had been expected to remain in the jurisdiction until at least Aug. 14 for their sentencing hearings.

“I have not encountered this situation before, where you have essentially two folks in the federal government telling you conflicting things,” said Bini. 

The attorney added that Potapenko or Turogin now carried letters with them at all times that stated DHS had deferred action on their “self-deportation” for one year in the event that authorities mistakenly tried to detain them and remove them from the country. Though the pair could still receive prison time, Potapenko, Turogin and Hashflare reported returning $400 million in crypto payments to users and “agreed to forfeit their interests in assets that the government froze in 2022.”

“We’re going to try and convince the judge to frankly side with DHS and let them self-deport to Estonia to their families because we believe that there was no actual financial harm to the customers of Hashflare,” said Bini. “It’s a weird [case] because for our clients, we want to be deported. Our clients are Estonian. Their families are Estonian.” 

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League table of foreign criminals awaiting deportation and their offences set to be published

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League table of foreign criminals awaiting deportation and their offences set to be published

A league table of foreign criminals and their offences is set to be published for the first time.

The plans, due to be announced on Tuesday, will reportedly focus on those offenders awaiting deportation from the UK.

The latest data shows there were 19,244 foreign offenders awaiting deportation at the end of 2024, a rise from 17,907 when the Conservatives left office in July and 14,640 at the end of 2022.

Despite more offenders being deported since Labour came to power, the number waiting to be removed from the UK has been growing.

Factors are understood to include the early release of inmates due to prison overcrowding, instability and diplomatic problems in some countries and a backlog of legal cases appealing deportation.

Shadow home secretary Chris Philp said the decision to publish the nationalities of foreign criminals showed Labour had “buckled” under pressure from the Conservatives to disclose the data.

The latest government statistics show there were 10,355 foreign nationals held in custody in England and Wales at the end of 2024, representing 12% of the prison population.

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The most common nationalities after British nationals were Albanian (11%), Polish (8%), Romanian (7%), which also represented the top three nationalities who were deported from the UK in 2024, according to Home Office figures.

Home Secretary Yvette Cooper is understood to have ordered officials to release the details by the end of the year, according to The Daily Telegraph.

The newspaper reported Ms Cooper overruled Home Office officials, who previously claimed it was too difficult to provide quality data on foreign criminals.

A Home Office source said: “Not only are we deporting foreign criminals at a rate never seen when Chris Philp and Robert Jenrick were in charge at the Home Office, but we will also be publishing far more information about that cohort of offenders than the Tories ever did.”

The source added that ministers wanted “to ensure the public is kept better informed about the number of foreign criminals awaiting deportation, where they are from and the crimes they have committed”.

In March, the government announced £5m in funding to deploy staff to 80 jails in England and Wales to speed up the deportation of foreign offenders.

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Foreign nationals sentenced to 12 months or more in prison are subject to automatic deportation, but the home secretary can also remove criminals if their presence in the UK is not considered desirable.

Shadow justice secretary Robert Jenrick welcomed the news, saying: “We will finally see the hard reality that mass migration is fuelling crime across our country… Frankly, the public deserved to know this [detail on foreign criminals] long ago.”

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Starmer and Zelenskyy discuss ending Russia’s ‘brutal war’ – as Putin says says he is open to bilateral talks on longer ceasefire

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Starmer and Zelenskyy discuss ending Russia's 'brutal war' - as Putin says says he is open to bilateral talks on longer ceasefire

Sir Keir Starmer and Volodymyr Zelenskyy spoke about ending Russia’s “brutal war” on Ukraine in their latest phone call on Easter Monday, as Vladimir Putin said he was open to bilateral talks.

The prime minister and Ukrainian president spoke on Monday afternoon, when Sir Keir “reiterated his iron-clad support for Ukraine“.

A Downing Street spokesperson added that the prime minister “said that the UK supports Ukraine’s calls for Russia to commit to a full ceasefire and that now is the time for Putin to show he is serious about ending his brutal war”.

“They discussed the latest developments on the Coalition of the Willing, and looked forward to further progress towards a just and lasting peace,” the spokesperson added.

Mr Zelenskyy later said on social media that he had a “good and detailed conversation” with the prime minister, and added Ukrainian officials will be in London for talks on ending the war with Russia on Wednesday.

“We are ready to move forward as constructively as possible, just as we have done before, to achieve an unconditional ceasefire, followed by the establishment of a real and lasting peace,” he added.

The Ukrainian president added that the 30-hour Easter truce, which both Kyiv and Moscow accuse the other of violating, showed that Russia “are prolonging the war”.

It comes as Mr Putin proposed bilateral talks with Ukraine on a longer ceasefire, which would mark the first time Russia held such talks since a failed peace deal soon after the invasion in 2022.

Speaking to a state TV reporter, the Russian president said: “We always have a positive attitude towards a truce, which is why we came up with such an initiative (the Easter truce), especially since we are talking about the bright Easter days.”

When asked about Mr Zelenskyy’s calls to extend the 30-hour ceasefire into a 30-day pause on civilian targets, he added: “This is all a subject for careful study, perhaps even bilaterally. We do not rule this out.”

The Ukrainian president said on Sunday evening that the Russian army had “violated Putin’s ceasefire more than 2,000 times” during the day, and accused Russia of “failing” to “uphold its own promise of a ceasefire”.

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From Saturday: Why Putin offered an Easter truce?

It also comes after Donald Trump has said he hopes Russia and Ukraine “will make a deal this week,” after he and his secretary of state Marco Rubio warned that the US will walk away from efforts to broker a peace deal unless there are clear signs of progress soon.

The US president said on his Truth Social platform that both countries would “start to do big business” with the US after ending the war.

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Last month, Ukraine accepted Mr Trump’s proposal for a 30-day truce, but Mr Putin refused to back a full 30-day ceasefire, saying crucial issues of verification had not been sorted out.

He then said he would agree not to target Ukraine’s energy infrastructure. However, both sides have accused each other of breaking the moratorium on attacks on energy targets and at sea.

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