Vitalik Buterin, creator of Ethereum, has urged caution before starting a business in Hong Kong and advised companies to evaluate the crypto-friendliness of the region before they plan a long-term presence in the region.
He argues that companies in the crypto-space need to consider regulations carefully and plan long-term, before they decide to plant their roots in the region. Buterin also argues that governments change their policies and regulations from time to time, without giving much notice to companies operating in the region.
According to Buterin, the crypto industry should be wary of how friendly the region is with cryptocurrencies and blockchain technology before making the decision to invest in the region.
Furthermore, companies should consider other factors such as the tax and labor environment in Hong Kong and find out if the government is supportive of cryptocurrency and blockchain technology before proceeding with plans for a long-term presence in the region.
The message from Buterin is particularly relevant in the case of Hong Kong, as it is a fast-growing financial hub that has shown a great deal of interest in the crypto-space.
Buterin’s warnings of caution cand helpful for crypto businesses looking to establish a presence in Hong Kong, as many local governments have put drastic restrictions on cryptocurrencies and blockchain projects.