The famous crypto exchange in Australia Independent Reserve has revealed plans to pursue the crypto-friendly country Hong Kong. An official announcement conveyed by the Independent Reserve chief executive Adrian Przelozny on March 22 revealed that the firm is considering establishing a regional office in Hong Kong. Przełożny argued that a friendly regulatory climate in the Asian country had prompted the crypto firm to invest in its expansion to Hong Kong.
Przelozny’s report comes days after the regulators in Hong Kong mentioned the licensing requirements for crypto. The March 20 Hong Kong Securities and Futures Commission (SFC) report outlined proposed regulations and the roadmap for making the country a global crypto hub.
Independent Reserve Expands to Hong Kong
According to Przelozny, Independent Reserve has been seeking to pursue the Asian market to bring services closer to the consumer. After engaging the Independent Reserve team, Przelozny was delighted to announce that his team will embarked on a business trip to Hong Kong in the coming week.
During the business trip, the Przelozny team is expected to hold business talks with entrepreneurs in the region to examine the suitability of the Hong Kong market. Also, Przelozny revealed plans to engage the Hong Kong regulators to examine the compliance requirements.
After the trip, the Przelozny team will formulate a report outlining the Hong Kong market’s risks, threats, and opportunities. The report will guide the Independent Reserve team to deliberate on the viability of Hong Kong. The team will also review the regulatory requirement to make informed decisions on the impending expansion to the new market.
Later, the Independent Reserve team will estimate the capital required to enter Hong Kong and predict the revenue and profit the investment will generate.
In an interview with a local news site in Australia, Przelozny admitted that the Chinese would replicate Hong Kong’s move after the proposed regulation came to fruition. He argues that the Chinese government is using Hong Kong to experiment with the success of crypto regulation. Przelozny is optimistic that the success of the Hong Kong regulation will inspire Chinese regulators to uplift the current crypto ban.
Examining the Suitability of Hong Kong Market
Przelozny’s statement during the interview corresponds to Justin Sun’s speculation on Chinese crypto regulation. In December 2022, Huobi chief executive Justin Sun stated the reason behind the Chinese regulators being reluctant to regulate crypto. Sun stated that the Chinese are experimenting Hong Kong crypto regulation to give their final decision.
Beside Independent Reserve interest, more than 80 companies have expressed interest in pursuing the Hong Kong market. A report from Hong Kong Secretary for Financial Services and the Treasury Christian Hui dated March 20, revealed that the crypto firms applying for the licenses are required to meet the new requirements, including Anti-Money Laundering compliance and, Know Your Customer. Also, the regulators need crypto firms to meet the global standard of the counter-financing terrorism.
Presently the Independent Reserve team integrated new domain tools , Bitcoin.com.au, for developers. Per Przelozny’s report, the latest development was valued at $2 million to enable consumers to purchase domain names more effortlessly. Przelozony-led projects have fully complied with the Australian virtual asset requirements. The Sydney-based crypto firm pledges to continue investing in technology to meet the market demand.