Hong Kong's New Cryptocurrency Regulations Set to Take Effect! A Review of 6 Cryptocurrency Projects Worth Investing In

Hong Kong's new cryptocurrency regulations will officially take effect on June 1, implementing a new licensing system for virtual asset service providers and promoting the legalization of cryptocurrency exchanges, providing clear regulatory guidance for virtual asset trading. It is expected that licenses for cryptocurrency exchanges will be issued one after another, accelerating the process of offshore cryptocurrency and gradually supporting web3 infrastructure, leading to a continuous rise in the Hong Kong sector.

From an investment perspective, what are the investment opportunities brought by Hong Kong's new cryptocurrency regulations? veDAO has researched many innovative projects that benefit from the new regulations in Hong Kong and recommends the following 6 cryptocurrency projects worth long-term investment.

1. NEO (NEO)

NEO is a smart contract platform established in 2014, formerly known as Antshares, and is a Layer 1 blockchain, often referred to as the "Chinese Ethereum." NEO is committed to replacing Ethereum and becoming the most developer-friendly blockchain.

NEO is a smart contract platform established in China, a Chinese project supported by the Chinese government, which regards smart contract technology as a strategic focus for national development and is also the first original blockchain underlying protocol in China. NEO places great emphasis on compliance and regulation, which helps it gain trust and legitimacy in China's highly regulated business environment.

Although NEO's project promotion is not extensive and relatively low-key, it is a long-term project. With the introduction of Hong Kong's new cryptocurrency regulations, the market also has long-term optimism for the token's price, with the possibility of significant future increases.

2. Vechain (VET)

VeChain is a Layer 1 blockchain focused on supply chain optimization, aiming to improve the efficiency and transparency of supply chain processes. The project was founded by Sunny Lu, the former Chief Information Officer of Louis Vuitton China, in 2015 and has close ties to China. This includes long-term partnerships with several major Chinese companies, such as state-owned enterprises China Tobacco and Haier, one of China's largest home appliance manufacturers; as well as active cooperation with the Chinese government to develop projects, such as a pilot project with the Guizhou Guian New Area government to develop a blockchain-based carbon credit trading platform. VeChain has also been recognized by the Chinese National Internet Information Office as a "national high-tech enterprise," which helps enhance its reputation and credibility in China.

VeChain provides solutions for real-world enterprises and supply chain issues. Many projects position themselves as solution providers, but in reality, their solutions are aimed at problems that do not affect many people. VeChain truly provides necessary solutions for real-world issues affecting the general public. The original token code for VeChain was VEX, which was later changed to VET in August 2018. VET tokens can be purchased on major centralized cryptocurrency exchanges such as Crypto.com, Huobi, KuCoin, and Gate.io.

3. Conflux (CFX)

Launched in 2018, Conflux is a public and permissionless Layer 1 blockchain, creating a borderless trading and technology ecosystem for global cryptocurrency projects, extending from China to North America, Russia, Latin America, Europe, Africa, and other parts of the world. The Conflux ecosystem currently includes 8 products, which, compared to the thousands of DApps in the Ethereum ecosystem, puts some pressure on Conflux but also presents opportunities. Conflux's ecosystem includes browsers, asset management tools, cross-chain exchanges, DeFi lending, NFTs, insurance, and more. The Conflux ecosystem covers Sushiswap, DODO, Pancakeswap, Binance, Gate.io, Chainlink, Waves, and more, as well as decentralized exchange Moonswap.

Conflux prides itself as the only compliant, open, and public blockchain in China, and actively collaborates with international brands and government organizations in China to develop projects related to blockchain and the metaverse. The Shanghai government has designated Conflux as a "key innovative blockchain platform" and provided funding for its development. In addition, Conflux has established partnerships with several major Chinese companies, including China's leading search engine Baidu and the Shanghai Grape and Wine Blockchain Alliance, which uses Conflux to track the origin and authenticity of grape and wine products, as well as collaborations with Chinese companies such as McDonald's and Oreo.

Conflux's token economy is built around the CFX token, which holders can use to pay transaction fees, earn CFX token rewards through staking and storage leasing, participate in network governance, and reward miners who ensure the secure operation of the network. CFX is traded on major exchanges such as Binance, OKX, and Gate.io.

On February 16, Conflux announced a partnership with China Telecom to launch the Hong Kong virtual blockchain BSIM card. The BSIM card combines Conflux's exclusive cryptographic technology, integrating basic functions such as Merkle tree, dPoS, PoW, and a wallet, with a unique isolated partition for public and private keys. The private key can be signed when inserted into a mobile phone and can even be managed, expected to directly bridge Web3 and the metaverse on supported phones.

The market expects Conflux to benefit from the news of compliance in Hong Kong and the potential widespread adoption of BSIM, leading to a nearly 300% surge in the CFX token in a single week, breaking through $0.3528 on the morning of May 21. As China's attitude towards the cryptocurrency industry gradually softens, Conflux may become the country's only compliant blockchain network.

4. Huobi (HT)

Huobi is a leading global cryptocurrency exchange currently operated by Tron founder Justin Sun. The company is currently relocating its headquarters from Malta to Hong Kong, aiming to expand its business footprint in Hong Kong, as Huobi believes that China will continue to be enthusiastic about digital assets. This move will position Huobi in a very advantageous position, becoming the first official exchange to operate in China, which may allow Huobi to gain the largest market share as a centralized exchange in the country.

Huobi has earned a reputation in China for its innovative products and services. Huobi was one of the earliest exchanges to offer margin trading and has launched several initiatives to promote its users' entry into web3, such as the Huobi Wallet, which allows users to securely store and manage digital assets. In addition, Huobi has established partnerships with several major Chinese companies, including JD.com and CITIC Group, further solidifying its legitimacy in China.

On November 22, 2022, Huobi Global announced that it would be rebranded as Huobi, with the Chinese brand name officially named "火必" (Huobi). On May 27, Huobi announced the launch of Huobi Hong Kong, and from June 1, users can buy, sell, and hold various cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Tron (TRX), Dogecoin (DOGE), and Shiba Inu (SHIB), through Huobi Hong Kong.

5. Filecoin (FIL)

Filecoin aims to be a distributed network for storing important human society information, allowing people to use Filecoin to store and retrieve data and collectively build a strong and active distributed storage market. Filecoin is a distributed storage network based on IPFS and serves as the incentive layer for IPFS. Filecoin is a pioneer in the encrypted market and has laid the foundation for the blockchain storage sector.

The Filecoin network consists of a large number of storage providers and developers, and its innovative use of cryptographic proof ensures the secure and reliable storage of data over long periods. The Filecoin network has already stored a large amount of data. Filecoin is associated with China in several ways, including receiving significant investments from Chinese companies, including Sequoia China and Distributed Capital. In addition, several Chinese blockchain startups have chosen to build on the Filecoin network, including IPFSMain, which provides decentralized data storage and transmission services for the Chinese market.

Recently, Hong Kong-listed company Era Global Holdings Limited announced that its wholly-owned subsidiary had purchased 12,000 FIL through on-exchange transactions, with a total price (excluding fees) of $639,942, at an average price of $53.33 per token. With the strong backing of Era Global Holdings, it is believed that Filecoin will go even further in the future.

6. Alchemy Pay (ACH)

Alchemy Pay is the world's most adaptable cryptocurrency payment infrastructure, providing decentralized payment and derivative financial solutions for over a million merchants and users in the virtual currency ecosystem.

Alchemy Pay is the leading decentralized digital currency payment solution and technology provider in the Asia-Pacific region, developing the first hybrid cryptocurrency and fiat payment solution in Asia, providing fast, secure, and convenient aggregated digital currency and fiat payment technology solutions for over a million online and offline merchants. Alchemy Pay is currently working on launching its second-generation decentralized payment system (ADPS2.0), integrating DeFi aggregation and a powerful Alchemy Trust system, bridging the trust certification channel between centralized and decentralized systems. ACH is the token issued by Alchemy Pay, used for ecosystem incentives, system access consumption, and governance, with a total supply of 10 billion tokens, 51% of which will be mined through continuous payments and financial ecosystem behaviors after the launch of ADPS2.0.

In February, Alchemy Pay announced support for purchasing cryptocurrencies with Google Pay, and Alchemy Pay will be the first to enter the Hong Kong market. From April 9 to May 9, Alchemy Pay placed a month-long cryptocurrency public service advertisement in Hong Kong International Airport, buses, and other landmark buildings, themed "I love Hong Kong, I love Bitcoin, I love ACH," to thank Hong Kong for its openness and inclusiveness in the Web3 industry. ACH is expected to have further growth opportunities in Hong Kong after the new regulations take effect.

Conclusion

Hong Kong's new regulations represent China's beginning to relax its regulatory control over the cryptocurrency industry, which has been increasingly valued by the cryptocurrency market KOL. This has brought many benefits to the cryptocurrency industry, with the 6 projects listed above showing significant growth in price and adoption.

China's increasingly prominent position in the cryptocurrency field is reflected in the 6 major Chinese projects mentioned above: NEO, VeChain, Conflux, Huobi, Filecoin, and Alchemy Pay. These innovative efforts are breaking through the boundaries of various fields, such as supply chain management, decentralized storage, smart contract platforms, and cryptocurrency payments. With China's relaxed regulatory stance, strategic support from the government, and solid partnerships with well-known Chinese companies.

As China's cryptocurrency ecosystem continues to thrive, the above 6 projects can leverage China's huge market potential and contribute to the global adoption of digital currencies, which will be a long-term benefit for these 6 projects' tokens.

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