The co-founder of the Gemini cryptocurrency exchange, Cameron Winklevoss, has said that the next crypto bull run will start in the East. The speculations that the next crypto bull run will commence in the East could be true, given the friendly crypto regulatory framework in Hong Kong that is attracting some of the largest crypto companies.
Will the next crypto bull run start in the East?
Gemini is one of the leading cryptocurrency exchanges. However, its size has not prevented it from facing regulatory scrutiny from the US Securities and Exchange Commission (SEC). The SEC sued Gemini and the bankrupt crypto lender Genesis over the Gemini Earn product. According to the regulator, this product was a security.
The SEC has been cracking down on the crypto industry since the bankruptcy of FTX. The CEO of Coinbase, Brian Armstrong, recently called out the regulator for regulating the market through enforcement. Winklevoss supports this sentiment, saying that the US could be left behind if it fails to embrace the sector.
In a Twitter thread, Winklevoss said that crypto was a global asset class that would continue to grow. Therefore, if the US continues to inhibit the industry’s growth, he believes that the country will miss out on being a vital part of the global financial infrastructure in the future.
“Any government that doesn’t offer clear rules and sincere guidance will be left in the dust. Quickly. This will mean missing out on the greatest period of growth since the rise of the commercial internet,” Winklevoss tweeted.
The CEO of Binance, Changpeng Zhao, responded to Winklevoss’ tweet. However, Zhao does not seem to agree that the next crypto bull run will start in the East. Instead, he believes that it will start in the Middle East.
Hong Kong is attracting crypto investments
Hong Kong is emerging as a major hub for cryptocurrency activities. The Hong Kong securities regulator, the Securities and Futures Commission (SFC), is mulling over reopening crypto trading for retail investors.
The SFC released a policy proposal saying retail investors could purchase large-cap cryptocurrencies such as Bitcoin and Ethereum. The regulator said retail investors would trade liquid cryptocurrencies on licensed cryptocurrency exchanges.
The new proposals by the SFC also say that crypto exchanges will be permitted to determine the liquid tokens they can trade and the amount they can invest. However, these platforms will have to do their due diligence
The friendly crypto regulatory regime in Hong Kong has attracted the attention of one of the largest banks in Singapore, DBS Group Holdings. The bank has applied for a license to provide crypto trading services to customers in Hong Kong.
The crypto-friendly regulatory framework in Hong Kong is different from the policy stance that China has taken. China banned crypto trading and mining activities in 2021. However, the country has been opening up, and there are speculations that it could lift the crypto ban as it seeks to attract crypto businesses like Hong Kong has done.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.