Cathie Wooden, the CEO of Ark Make investments, has hailed Hong Kong’s robust pro-crypto regulatory coverage.
She additionally urged the USA authorities to comply with Hong Kong’s template for the rising trade.
Cathie Wooden Lauds Hong Kong Regulators
Throughout her deal with at Hong Kong’s Web3 carnival, Cathie Wooden counseled the regulatory efforts of establishments just like the Securities and Futures Fee (SFC) to make clear the crypto trade. She emphasised the SFC’s function in establishing a sturdy framework for crypto buying and selling beneath institutional supervision.
Wooden underscored Hong Kong’s emergence as a coverage chief, attributing it to the federal government’s proactive stance towards fostering progressive applied sciences.
“Hong Kong regulatory companies such because the SFC have achieved an excellent job. They’ve offered a really complete administration construction to permit digital asset commodities to be traded…It may be stated that Hong Kong is the “chief” when it comes to coverage. It strongly encourages the event of progressive know-how and entrepreneurs. The system of funding and mutual cooperation with the federal government has given the establishment mannequin,” Wooden remarked.
Certainly, Hong Kong’s regulatory surroundings has embraced favorable insurance policies for the crypto sector. This has positioned the city-state as a welcoming hub for crypto-related initiatives and development.
Moreover, Wooden expressed issues over the absence of a coherent regulatory framework in the USA. She added that this lack of readability has impeded progress and created an uneven enjoying discipline for companies inside the sector.
Learn extra: Crypto Regulation: What Are the Advantages and Drawbacks?
Over the previous 12 months, a number of crypto companies within the US have lamented the trade’s lack of regulatory readability. Numerous federal companies, together with the Securities and Change Fee (SEC) and the Commodity Futures Buying and selling Fee (CFTC), have fragmented the crypto trade’s regulatory insurance policies. This has led to confusion and uncertainty amongst companies working within the house.
Wooden highlighted the results of this regulatory ambiguity. She identified that this has led to a expertise drain within the sector as US-based crypto companies search extra favorable regulatory climates overseas. Corporations like Coinbase and Gemini established worldwide buying and selling platforms final 12 months as a result of regulatory challenges of their house nation.
“The US is at the moment dealing with regulatory uncertainty and a mind drain within the blockchain discipline. If regulators can deal with practitioners higher and provides them extra readability and freedom, we can see higher outcomes,” she added.
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