Aiming to become the World's Crypto Center, Hong Kong Approves 11 Crypto Currency Exchanges

The Hong Kong Securities and Futures Commission (SFC) recently gave preliminary approval to 11 cryptocurrency exchanges to continue operating in the city. Reporting from Coinmarketcap, Wednesday (5/6/2024), this marks the first step towards issuing virtual asset trading platform (VATP) licenses since 2022. This step comes as Hong Kong aims to establish itself as a leading crypto center alongside global partners such as Singapore and Dubai.

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According to a South China Morning Post report, among the approved exchanges, Crypto.com, which was originally founded in Hong Kong and now operates from Singapore, stands out as the largest exchange considered licensed.

Notably, it is the only exchange in the top 20 based on 24-hour trading volume measured by CoinGecko, which is still seeking a license in Hong Kong. Bullish, which was founded in Gibraltar but also operates from Singapore and New York, is the next significant exchange to be considered licensed.

Under new regulations introduced last year, cryptocurrency exchanges must obtain approval for such arrangements to continue operating pending full licensing approval. The deadline for exchanges that do not request permission to cease operations is June 1.

However, some exchanges have withdrawn their license applications due to complications arising from regulatory changes. Some of the exchanges that withdrew their applications had ties to mainland China, where they were originally founded but abandoned after Beijing's crackdown on digital tokens.

Leading exchanges include local affiliates of major platforms such as OKEx, Binance, HTX, KuCoin, Gate.io, and, most recently, Bybit. The Hong Kong government has emphasized regulatory compliance, including measures to prevent mainland Chinese residents from accessing crypto platforms and the recently approved Bitcoin (BTC) and Ethereum (ETH) exchange-traded spot (ETF) markets.

44% of Election Participants in the US Will Invest in Crypto if This Is Fulfilled

Previously, according to a new survey by Grayscale released on Tuesday, May 28, 2024, 44% of voters in the US who do not currently own crypto are delaying purchases until there are better regulatory policies. Reporting from Coinmarketcap, Wednesday (5/6/2024), this shows that large new investments could enter the crypto market when the US government clarifies its regulatory stance on digital assets.

Grayscale noted in its report a notable shift in interest and perception regarding cryptocurrency ownership, which is becoming an increasingly relevant topic as the 2024 US presidential election approaches. The poll found 65% of respondents view holding Bitcoin as an investment in the future of blockchain technology, while 53% see it as a way to pay for things digitally or as a digital currency.

Additionally, 43% consider Bitcoin a speculative investment, and 36% consider it a digital form of gold or a hedge against inflation. On the other hand, a survey conducted by The Harris Poll from April 30 to May 2 included responses from 1,768 adults who plan to vote in the upcoming presidential election.

The findings underscore the growing importance of digital assets in the political landscape, with 47% of respondents indicating they expect to include cryptocurrencies in their investment portfolios in the future, up from 40% in November.

The Grayscale survey also highlighted that 41% of respondents are paying more attention to Bitcoin and other cryptocurrencies due to geopolitical tensions, inflation and the weakening US dollar, a significant increase from 34% in the previous six months.

60% of Crypto Investors in the United States Don't Understand Blockchain

Previously, based on findings from a Preply study, around 40% of Gen Z crypto investors in the United States (US) lacked confidence in their knowledge of crypto. Quoted from the Bitcoin.com page, Monday (27/5/2024), this lack of self-confidence is even more pronounced among millennials (35%) and Gen X (32%).

The study also revealed that 60% of US crypto investors “don't know what blockchain is.” Despite this, data shows 27% of those who have never invested in crypto and expressed interest in taking a class to learn more. When broken down by gender, the research found 54% of men and 53% of women surveyed were interested in learning more about crypto.

In terms of generational interests, Gen X has the highest proportion of individuals (57%) who want to learn more. Gen Z, with 41% expressing interest in learning about crypto, has the lowest proportion of individuals willing to learn. This study also found interest in digital assets other than crypto varies from generation to generation.

For example, 12% of millennials surveyed reported having invested in non-fungible tokens (NFTs), compared to only 4% of Baby Boomers. Commenting on the findings regarding crypto investors' interest in NFTs and the metaverse, the survey report stated: “Only 42% of survey respondents expressed confidence in their understanding of NFTs and the metaverse.

This represents an opportunity to educate the public on this topic. This may also explain why only 11% are interested in investing in NFTs, while a much larger 32% want to join the metaverse. However, the report notes US residents who have invested in NFTs are also more likely to invest in crypto, suggesting this may be a first step to exploring other digital assets.

This billionaire often criticizes Bitcoin, but his company makes money from crypto

Famous investor Warren Buffett has long been skeptical of Bitcoin and maintains a critical view of cryptocurrencies. Even so, Berkshire Hathaway Inc, which is a company owned by Warren Buffett, continues to gain financial profits through its investment in Brazilian fintech Nu Holdings Ltd.

While Buffett has openly criticized Bitcoin, calling it rat poison, Berkshire Hathaway has reaped significant profits through its holdings in Nu Holdings. Initially investing USD 500 million or equivalent to IDR 8.1 trillion (assuming an exchange rate of IDR 16,235) in the Series G funding round and an additional USD 250 million or equivalent to IDR 4.05 trillion has produced results. Nu Holdings, founded in 2013, launched the Nucripto platform in 2022, allowing users to trade more than 15 tokens.

The company's performance has been impressive, with the market surging by 100% in 2023 and another 50% increase in early 2024. The success of this investment has put Buffett in a difficult position, as the performance of Nu Holdings, which is up nearly 125% this year, stands in stark contrast to his negative stance on Bitcoin.

Meanwhile, Bitcoin itself had a great year in 2024, significantly outperforming indices like the S&P 500. Understanding the broader context surrounding Berkshire Hathaway's involvement with Nu Holdings can help assess the significance of this development. Warren Buffett's strong objections to Bitcoin date back some time. He consistently considered it a non-productive asset with no intrinsic value.

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