Hong Kong lawmaker courts Coinbase amid US legal troubles

Hong Kong Legislative Council member Johnny Ng has contacted Coinbase in his bid to help the exchange register in the region, according to a June 14 tweet.

Ng wrote:

“I have already got in touch with Coinbase, and we will learn more about the development opportunities in Hong Kong together.”

On June 10, Ng invited global virtual asset trading operators, including crypto exchange Coinbase, to apply to operate in the region. At the time, the lawmaker said he would be “happy to provide any assistance” to make the process seamless.

This public offer follows recent regulatory troubles in the United States targeted at crypto firms. Last week, the Securities and Exchange Commission (SEC) filed lawsuits against two major crypto platforms, Coinbase and Binance, over federal securities law violations.

Coinbase eyes expansion

Prior to the SEC’s lawsuit, Coinbase had been actively working to expand offshore in response to the unfavorable regulatory environment.

To expand its reach beyond the U.S., Coinbase launched an international exchange in May. This platform allows institutional traders to access Bitcoin (BTC) and Ethereum (ETH) perpetual futures.

Coincidentally, the exchange announced a partnership with Austrian fintech firm Bitpanda, also aimed at extending its institutional trading services to a global audience.

Coinbase VP of International & Business Development Nana Murugesan later revealed that the exchange was considering using the United Arab Emirates as the hub for its international service in the Middle East.

Despite these moves, Coinbase CEO Brian Armstrong has maintained that the company will always have a U.S. presence.

Hong Kong attracts crypto firms

Meanwhile, Hong Kong is making strides in creating a framework to allow crypto firms to work compliantly within its borders. Hong Kong’s Monetary Authority (HKMA) recently said it aims to introduce a comprehensive regulatory framework for stablecoins within 18 months.

These moves aim to attract market participants from countries like the U.S. with more stringent regulations.

Already, several crypto exchanges, like Huobi, CoinEx, and OKX, have moved to set up shop in the area since it enabled retail access to crypto trading on June 1.

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