A Closer Look at Independent Reserve of the Australian Cryptographic Exchange’s Plans to Focus on Hong Kong Amid Regulatory Reforms

On March 23, it was announced that the Independent Reserve of the Australian Cryptographic Exchange plans to pay closer attention to the opportunities in Hong Kong, China, as Hong Kong is undergoing regulatory reforms to create a digital asset business center.

Australian Crypto Exchange Independent Reserve plans to closely monitor opportunities in Hong Kong

Introduction

On March 23, 2021, the Independent Reserve, one of the leading and regulated Australian cryptographic exchanges, announced its intention to expand operations and focus on the developing opportunities available in Hong Kong. This is attributed to the regulatory reforms implemented in Hong Kong, which is reportedly aiming to create a digital asset business center. This article will explore the Independent Reserve’s plans and the potential opportunities that Hong Kong presents.

Background Information on Independent Reserve

With its headquarters located in Sydney, Independent Reserve is one of the largest and most respected blockchain and cryptographic asset exchanges in the Asia-Pacific region. Established in 2013, the Independent Reserve has been audited by KPMG, and it is currently the first crypto platform to receive governmental insurance coverage in Australia.

Expansion and Opportunities in Hong Kong

Hong Kong, being a global financial hub, has witnessed rapid developments within the blockchain and cryptocurrency industries over the past few years. The Hong Kong Monetary Authority (HKMA) has set up a framework to issue virtual banking licenses, launched a blockchain trade finance platform, and developed a blockchain-based consumer finance platform.
Furthermore, the Hong Kong Securities and Futures Commission (SFC) recently released a new framework that regulates the security tokens markets, intending to improve and create a better regulatory environment for blockchain-based financial systems. These regulations announced by the SFC puts Hong Kong in a strategic position to become a major player in the global digital asset market.
The Independent Reserve is looking to expand into Hong Kong and capitalise on the evolving regulatory environment, which will enhance its strategic influence in the Asia-Pacific region.

Benefits of the Independent Reserve’s Expansion into Hong Kong

The Independent Reserve’s move into Hong Kong presents several benefits for the organization, including:

Increased Customer Base

Having access to Hong Kong’s digital asset market provides an opportunity for the Independent Reserve to grow its customer base. The exchange will have access to a larger pool of users looking for investment opportunities.

Regulatory Environment

Hong Kong’s regulatory environment provides a conducive trading environment that streamlines cryptocurrencies’ legality while establishing a degree of compliance among market participants’ offerings.

Strong Economic Growth

China’s adoption of blockchain technology has ensured that the infrastructure required for the industry is available in the region. Hong Kong’s strategic location and close proximity to China also provide an opportunity for Independent Reserve to expand its market beyond Australia and New Zealand.

Potential Strategic Partnerships

Independent Reserve’s expansion will create new relationships with financial institutions in the region that will be interested in partnering with them to offer their services.

Challenges for the Independent Reserve in Hong Kong

Expanding into a new market has its challenges, and the Independent Reserve may face some stumbling blocks when venturing into Hong Kong’s digital asset market:

Competition

Hong Kong has a large number of crypto exchanges, some of which are well-established giants in the industry, making competition for Independent Reserve fierce.

Regulatory Compliance

While the regulatory environment is beneficial to the Independent Reserve, the company must comply with all relevant laws, regulations, and guidelines issued by relevant regulatory authorities.

Operational Costs

Expanding into a new market comes with operational expenses such as hiring local talent, securing the necessary licenses, and complying with regulatory guidelines, which may significantly increase the exchange’s expenses.

Conclusion

The Independent Reserve’s move into Hong Kong represents a significant strategic decision for the company. Hong Kong’s regulatory changes provide the Independent Reserve with more opportunities for growth and development. However, the exchange must be ready to overcome the challenges that come with expanding into a new market. Independent Reserve is in a prime position to leverage its resources and niche in the industry to offer Hong Kong customers a unique investment opportunity.

FAQs

Q1. What unique features does the Independent Reserve offer that make it different from other crypto exchanges?

The Independent Reserve is one of the most well-established, regulated blockchain and cryptographic asset exchanges in the Asia-Pacific region. It stands out by offering features like governmental insurance coverage, maintaining all customer deposits in audited, segregated cold storage, and one of the lowest trading fees in the market.

Q2. How beneficial is Hong Kong’s regulatory environment for crypto exchanges like the Independent Reserve?

Hong Kong’s regulatory environment helps facilitate a more user-friendly trading environment for cryptocurrencies, thereby fostering the industry’s growth. Independent Reserve will benefit from a harmonious regulatory framework that ensures legal enforcement, promotes transparency, fosters innovation and creativity, and encourages fair competition.

Q3. What opportunities will the Independent Reserve have in Hong Kong’s digital asset market?

Independent Reserve can optimise its expansion into Hong Kong by offering Hong Kong customers a unique investment opportunity. This international expansion provides the company with the platform to grow its customer base in the Asia-Pacific region and create new relationships with financial institutions in the region.