Ark Invest CEO Cathie Wood praised Hong Kong's strong crypto regulatory policies.
He also called on the US government to follow Hong Kong's example regarding emerging industries.
Cathie Wood praises Hong Kong regulators
In a speech at Web3 Carnival in Hong Kong, Cathie Wood praised the regulatory efforts of institutions such as the Securities and Futures Commission (SFC) to bring clarity to the crypto industry. He highlighted the SFC's role in establishing a solid framework for virtual currency trading under institutional supervision.
Mr. Wood highlighted Hong Kong's emergence as a policy leader and attributed this to the government's proactive stance on fostering innovative technologies.
“Hong Kong regulators, such as the SFC, have done a very good job. They provide a very comprehensive control regime to enable the trading of crypto-assets products… and Hong Kong is a ‘leader’ in terms of policy. You could say that. We strongly encourage the development of innovative technologies and entrepreneurs. “The system of investment and mutual cooperation with government has provided a good model for this institution,” Wood said.
In fact, Hong Kong's regulatory environment is receptive to policies favorable to the cryptocurrency sector. This has positioned the city-state as a welcome hub for crypto-related initiatives and growth.
Additionally, Wood expressed concern about the lack of a consistent regulatory framework in the United States. He added that this lack of clarity is hindering progress and creating an uneven playing field for companies in this sector.
Read more: Cryptocurrency regulation: What are the advantages and disadvantages?
Over the past year, several US crypto companies have bemoaned the industry's lack of regulatory clarity. Various federal agencies, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), have fragmented regulatory policies for the cryptocurrency industry. This has caused confusion and uncertainty among companies operating in this sector.
Mr. Wood highlighted the impact of this regulatory ambiguity. She noted that this is leading to an exodus of talent in the sector as US-based crypto companies seek more favorable regulatory environments overseas. Companies such as Coinbase and Gemini established international trading platforms last year, citing regulatory challenges in their home countries.
“The U.S. is currently facing regulatory uncertainty and brain drain in the blockchain space. The more regulators can treat practitioners better and give them more clarity and freedom, the better the outcome. “Sho,” she added.
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