Consensus Hong Kong ended with a bang as policymakers announced new initiatives to grow the digital asset sector.
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The narrative
Politicians at Consensus Hong Kong announced a series of initiatives aimed at strengthening the local digital asset ecosystem.
Why it matters
Philosophically, the question of why we still care about this industry is still top of mind. The consensus showed that despite the sometimes ridiculous projects and unattainable hype cycles, companies still have a real use for the technology.
To break it down
Hong Kong regulators are trying to encourage growth in the local digital asset ecosystem, unveiling a framework for perpetual contracts and saying stablecoin licenses will be announced in the coming month.
“This certainty of direction gives many companies the confidence to invest in Hong Kong and build further,” said Jason Atkins, Chief Commercial Officer of crypto trading firm Auros.
While the special administrative region of China is not yet close to approving all applicants and activities, the fact that regulators such as the Securities & Futures Commission and the Hong Kong Monetary Authority are willing to engage and adapt their approaches to digital assets is still significant, he told CoinDesk. They are asking companies what to do to encourage investment, he said.
“We’ve gone into the SFC a couple of times, talked to the HKMA about think tanks and panels and groups where they’re literally just trying to understand how our businesses work and what we need to invest even more in the city, which is really positive,” he said.
The regulatory authorities have been positively engaged and trying to see what companies need from them to operate in the region. This includes asking whether certain rules need to be adjusted to meet market needs, he said.
“So they’re thinking about how to loosen them or ease them for certain types of investor classes,” he said.
This fits with a broader trend of more traditional institutions looking to get into crypto – or at least blockchain.
Several panelists representing companies such as Franklin Templeton and Swift said they were using or exploring blockchain technology to streamline their operations. It’s reminiscent of the “blockchain, not Bitcoin” era of 2018, but these entities are actually executing rather than just announcing pilots.
An increasing number of traditional entities moving into blockchain could be the story of 2026, said Edge & Node CEO Rodrigo Coelho.
Companies “are rushing to figure this out,” he told CoinDesk. “Companies seek advice and expertise.”
Shawn Chan of Singapore Gulf Bank described these types of rails as being superior in transferring value.
While international regulatory hurdles need to be worked out, he estimated that companies will increasingly adopt blockchain tools within the next decade.
This week
- Congress and federal regulators are not holding any crypto-related hearings this week.
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See you next week!
