Zodia Custody is an institutional crypto custodian that provides secure storage and transfer of cryptocurrencies. The motive behind custodian expansion in Hong Kong is based on the rising demands of crypto-related services globally.
Zodia aims to work as a bridge between traditional finance and the evolving crypto industry by enabling institutional investors solutions that comply with global norms and rules/regulations.
It is important to note that Zodia is one of the first crypto custody services providers that obtained a license from the financial conduct regulators of the United Kingdom in 2022.
After this expansion, Zodia is planning for its expansion in regions like Singapore, Switzerland, and the United States. In the past few months, a sudden surge in global crypto adoption has been seen, which motivated the company for its expansion in Hong Kong.
A newly launched report of Fidelity Digital Assets states that 90% of institutional investors expect to have an allocation to digital assets by 2026. The report highlights that around 52% of Asia-based investors have exposure to crypto assets compared to the U.S. 27% and Europe 33%.
The company believes that its expansion plans will help others to get motivated and a surge in crypto adoption in Hong Kong can be expected in the coming years.
Is Hong Kong Evolving a Crypto Hub?
Following the decision of China to ban crypto mining and other crypto-related activities, Hong Kong has eased its rules and regulations over crypto.
In the past few years, the government of the region has worked to make the rules and regulations friendly for crypto enthusiasts.
The Securities and Futures Commission (SFC), the financial regulator of Hong Kong, recently called for an update on digital assets policies in the region. These updates came in the wake of enhancing the existing regime and eliminating the unnecessary clauses while including the crucial ones.
In the notice released on October 20, 2023, SFC noted that professional investors will be restricted from opting for some cryptocurrency products. There are updated guidelines for intermediaries like crypto exchange platforms.
For instance, the platforms will be required to assess clients looking to venture into the market ensuring that they have prior knowledge of crypto investments.
Hong Kong stands out for its significant share of institutional cryptocurrency transactions, especially those involving $10 Million or more, surpassing other countries mentioned in the report. In contrast, South Korea leads in professional investments ranging from $10,000 to $1 Million.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/10/30/crypto-custodian-zodia-expands-its-crypto-service-in-hong-kong/