Coinbase invited to set up shop in Hong Kong after SEC lawsuit

Hong Kong is taking another run at becoming a global crypto hub, with one local lawmaker seizing the US crackdown to pitch Coinbase

article-image

Mc_Cloud/Shutterstock modified by Blockworks

share

Hong Kong legislator Johnny Ng has invited Coinbase and other crypto exchanges to establish official operations in the city state amid hostility from US regulators.

“I hereby offer an invitation to welcome all global virtual asset trading operators including Coinbase to come to [Hong Kong] for application of official trading platforms and further development plans,” Ng tweeted.

“Please feel free to approach me and I am happy to provide any assistance.”

The public offer comes after lawsuits brought by the US Securities and Exchange Commission (SEC) against two major cryptocurrency platforms Binance and Coinbase last week.

Loading Tweet..

The agency is suing Coinbase for securities violations alongside failing to register as a broker dealer. Outside of similar alleged violations at Binance, the SEC claims Changpeng Zhao’s firms manipulated markets, commingled user funds with its own and traded against its customers.

Observers anticipate that the crypto exchange crackdown in the US will drive a shift in trading volume and innovation towards jurisdictions with more favorable regulations, with Hong Kong positioning itself as crypto-friendly of late. Blockworks has reached out to Coinbase for comment.

Hong Kong open for retail crypto trade

Hong Kong’s Securities and Futures Commission (SFC) has just begun accepting applications for licenses from crypto trading platforms. The regulator permitted licensed platforms to serve retail crypto investors since Jun. 1, lifting a ban imposed in late 2020.

The SFC has established clear guidelines for platform operators: they must hold liquid assets worth 12 months of operating expenses (excluding virtual assets) as one requirement.

Several crypto firms including Huobi, Gate Group, Amber Group, OKX, and BitMEX, have already expressed intention to apply for a license in Hong Kong. Application fees vary between HK$1,790 ($228) and HK$4,740 ($604).

But until late April, only around 10 registered fund managers in Hong Kong had converted their licenses to handle crypto for their clients.

Markus Thielen, Matrixport’s head of research, previously told Blockworks that Hong Kong plans to become Asia’s main crypto hub could work out.

“There is now a gold rush from international crypto firms to serve Hong Kong-based retail investors actively engaging in high-volatility products such as warrants and other derivative contracts,” he said. 

“With nearly 100 local billionaires, the city is rich in tycoons and well-capitalized family offices that could fund crypto firms moving into the city.”


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates.png

Research

Maple Finance has successfully navigated significant market challenges through its strategic pivot to secured lending (Maple v2) and the launch of its Syrup product. Syrup has become a primary growth driver, delivering sustainable, outperforming stablecoin yields and rapidly increasing TVL. The upcoming custody-first Bitcoin staking product (istBTC) presents another significant avenue for expansion. Crucially, Maple has achieved operational profitability, a key inflection point that, combined with a fully vested token and active buyback mechanism, strengthens its investment case. While valuation metrics suggest potential undervaluation relative to peers and growth, the primary forward-looking risk identified is the long-term sustainability of its current high-take-rate collateral staking revenue model.

article-image

The shorts looking for funding range from charming animated series to gritty live-action dramas

article-image

Money, it turns out, is emergent, like consciousness

article-image

Bridge flows churn in both directions as risk appetite returns

article-image

Even with an uncertain outlook thanks to tariffs, Big Tech executives are still ramping up their AI investments

article-image

The Infinite Node Foundation has $25 million in funding and plans to exhibit the Punks in Palo Alto

article-image

LBTC and sBTC integrations unlock new DeFi yields for BTC holders