HK blockchain community open to more regulatory clarity, industry survey finds

By Staff Reporter

Regulatory clarity remains the topmost concern amongst blockchain technology enthusiasts, according to a latest survey conducted by the leading industry body the FinTech Association of Hong Kong (FTAHK).

The survey based on interviews with more than 160 companies from across the Hong Kong blockchain ecosystem found that providing a clear legal and regulatory framework should be the top challenge to be addressed in 2019.

The respondents were “open to more regulations around blockchain in order for the technology to achieve its full potential and go mainstream in the coming years,” according to a press release.

Despite the volatility in the cryptocurrency market, nearly 80% of the respondents said that they would be willing to invest in crypto in 2019.

In addition, the blockchain industry is anticipated to grow rapidly over the course of this year. Survey respondents expect service providers specially geared towards this market appearing on the scene, including lawyers, tax experts, PR and headhunters.

“The FinTech Association of Hong Kong looks forward to working with not only our FinTech start-up or traditional financial services members,” said Henri Arslanian, chairman of FTAHK, “but also our regulators and policymakers to ensure that Hong Kong retains this leading position both regionally and globally.”

The top three priorities for the blockchain community in 2019 are blockchain adoption, technological development and public awareness. More than one-third of respondents would like to see more events organized and more diverse blockchain applications developed in this year.

Financial institutions make up the majority of companies actively developing blockchain projects at 35%, while technology firms account for 28%

As part of the survey, the FTAHK also created a map of Hong Kong’s blockchain ecosystem.

“The resulting map for the first time clearly details all the firms involved in building Hong Kong’s blockchain ecosystem, and demonstrates Hong Kong’s emerging position as one of the world’s most sophisticated and interconnected blockchain hubs,” the statement said.

Hong Kong and Singapore have emerged as the two top cities in Asia to launch blockchain projects but the regulations around the new technology continue to remain murky. It is not surprising why a large number of participants of the survey believe that they need more clarity so that the technology behind Bitcoin can see quicker adoption.

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