- Brock Pierce hints at returning to Hong Kong as the city seeks to revive its crypto industry.
- Pierce sees trade finance and an Ethereum Spot ETF as key opportunities in Hong Kong’s crypto market.
As Hong Kong intensifies efforts to draw in the cryptocurrency sector, Brock Pierce, the investor who co-founded Tether, is thinking about making a third trip back.
Coy talks about the details of his new business and whether Hong Kong will be its permanent home. Pierce, who currently serves as the chairman of the Bitcoin Foundation, stressed that the city was mentioned in the continuing discussion about his next moves.
According to SCMP, Tether co-founder Brock Pierce hinted at a possible return to Hong Kong. Brock Pierce co-founded the stablecoin Tether in Hong Kong ten years ago, and he is considering returning to HK for a third time as the HK government strives to attract the cryptocurrency…
— Wu Blockchain (@WuBlockchain) June 2, 2024
Optimism Amid Regulatory Challenges
Pierce’s remarks follow the withdrawal of several major cryptocurrency exchanges—many of which have links to mainland China—from their applications to be approved as virtual asset trading platforms in the region.
This move was brought about by the Securities and Futures Commission (SFC) new rules that forbade regulated exchanges from providing services to mainland Chinese citizens, therefore reducing the attraction of the local market.
Pierce is nevertheless upbeat about the region’s potential as a backdoor to the large mainland China market, where commercial cryptocurrency activity is outright prohibited, despite these legal obstacles. “The question is not so much if, it is a matter of when,” he says, indicating that China will unavoidably adopt cryptocurrencies.
Encouragement from Recent Regulatory Moves
The latest efforts by Hong Kong to give investors regulatory clarity have encouraged Pierce and put the city in a better position than nearby rivals like Singapore, Japan, and South Korea.
Citing the possibility of a HK digital dollar stablecoin, he emphasizes trade finance (tradefi) as a very promising space for the cryptocurrency market in Hong Kong.
China’s supply chain advantage is a crucial component of this vision. Pierce thinks there is a big chance to create the ideal system in Hong Kong.
Though he admits that Hong Kong’s licensing system is expensive, he sees these as short-term obstacles and believes that regulations will eventually relax.
Leadership and Historical Ties
Pierce underlines that strengthening Hong Kong’s standing in the cryptocurrency market depends on leadership. His close links to the city are highlighted by his early forays into virtual currency and his sale of a gaming company to Tencent.
According to a prior report by ETHNews, OKLINK predicts the launch of an Ethereum Spot ETF will significantly increase the appeal of cryptocurrencies in Hong Kong. Other L1 tokens should be able to become ETFs thanks to this action.