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Hong Kong’s Approach to Crypto Regulation Could Attract Capital, Talent to Asia: Bernstein
The Securities and Futures Commission is adopting a “regulate to protect” approach to digital assets, the report said.
By Will Canny
Updated Feb 21, 2023, 4:29 p.m. Published Feb 21, 2023, 10:04 a.m.
The Hong Kong Securities and Futures Commission (SFC) has taken a “regulate to protect” approach to cryptocurrencies, contrasting with recent action in the U.S. of regulation by enforcement, Bernstein said in a research report Monday.
The broker says this could be a “critical fork in the road” for the cryptocurrency industry, which could lead to capital and talent moving to Asia as a crypto hub.
STORY CONTINUES BELOW
The SFC on Monday published its proposed rules for virtual asset trading platforms and is seeking public comment. It plans to allow retail investors access to licensed exchanges, subject to restrictions, the report said, reasoning that investors are better off dealing with licensed venues rather than offshore and unregulated players.
Trading in crypto derivatives remains off the table for now as the SFC has deferred the decision on allowing such instruments to a later point in time.
The new licensing regime is expected to go live June 1, with a 12-month transition period for existing crypto exchanges. Exchanges that are not already operating in Hong Kong will have to be fully compliant before they start trading.
Read more: How Hong Kong Is Gearing Up to Regulate Stablecoins
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KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
알아야 할 것:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
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Coinbase drops peso-based services in Argentina less than a year after market entry
The move is deemed a "deliberate pause" and not a full exit, with Coinbase planning to reassess and return with a stronger product.
What to know:
- Coinbase is suspending its fiat on- and off-ramp services in Argentina, effective January 31, 2026. Users will no longer be able to withdraw pesos to local banks from then on.
- The move is deemed a "deliberate pause" and not a full exit, with Coinbase planning to reassess and return with a stronger product.
- Crypto-to-crypto trading will remain unaffected on the exchange, with cryptoasset withdrawals operational.
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