Tokyo and Hong Kong are two major cities that have been notably absent from CoinDesk’s list of global crypto hubs. However, both cities are now actively welcoming crypto, while other jurisdictions, such as the United States, are sending a less friendly message. Japan and Hong Kong are now poised to become increasingly important players in the crypto world.
Japan is actively trying to position itself as a Web3 powerhouse, says Emily Parker, CoinDesk’s executive director of global content. Japan is no stranger to crypto, but after the Coincheck hack in 2018, the country went into a period of hibernation. Regulators have since tightened the reins and put in place safeguards to protect users.
Hong Kong is also making a clear effort to become a global crypto destination. The city began accepting licenses for crypto exchanges in June and has reportedly pressured banks to take on crypto exchanges as clients. In the midst of Coinbase’s battles with the SEC, a Hong Kong lawmaker invited the U.S.’s largest crypto exchange to apply to operate in the region.
Operating in these jurisdictions comes with significant rules and restrictions, and some global companies may find it difficult to survive there. Nonetheless, Tokyo and Hong Kong have made it clear that they are open for crypto business, and are thus likely to attract crypto businesses from around the world.