HONGKONG

Hong Kong just launched a new #Crypto plan called Policy 2.0 with a system called LEAP.
What does it mean?
✅ Start giving licenses for #Stablecoins from August 1, 2025
✅ Make it easier to turn real things (like gold, bonds, energy) into tokens
✅ Set clear rules for crypto exchanges and wallets
✅ Support new crypto projects and train more people

#HongKong wants to become a top country for crypto and Web3.
This is a big step for the future of digital money.

$BTC $ETH

Listen, an interesting thing has happened in the world of cryptocurrencies: Hong Kong has officially allowed the first broker from mainland China to trade digital assets. This broker is Guotai Junan Securities (Hong Kong), a subsidiary of the large financial structure Guotai Junan International, which operates in mainland China.
What happened? They were granted an updated license from the Hong Kong Securities and Futures Commission (SFC). Previously, this company already had a type 1 license — it allowed trading in ordinary securities. Now they have been officially allowed to trade cryptocurrencies, and in full compliance with local laws and as part of an agreement with licensed virtual asset platforms. That is, their customers can now buy and sell bitcoins, ethereums and stablecoins through this platform — absolutely legally.
This is actually a big step — and not just for the company. Hong Kong has long sought to become a crypto hub in Asia and create a transparent and reliable market for digital assets. And the approval of such a major player suggests that the region is betting on institutional investors, not just retail traders.
Moreover, it is also a political signal. Although China maintains a tough position within the country towards cryptocurrencies, it makes it clear through Hong Kong that digital finance is the future, and it cannot be abandoned altogether. A kind of "dialogue" is beginning between traditional banks and the cryptocurrency sector, but within the framework of strict regulation.
So, in fact, Guotai Junan became the first to follow this new route. And, most likely, others will catch up with them.
Now the question is: if even such large and cautious players as Chinese brokers start entering the crypt legally and with regulatory approval, maybe this is a sign that the crypt is really becoming part of the future financial system?
#CryptoNewss #cryptocurrency #HongKong #crypto

🔹 The Hong Kong Monetary Authority (HKMA) stepped back into the foreign exchange market to defend the city's long-standing currency peg to the U.S. dollar. The Hong Kong dollar slipped below the lower bound of HK$7.85 per USD, triggering immediate action from the central bank.
🔹 In response, HKMA sold HK$9.4 billion (approximately $1.2 billion USD) from its reserves to buy back the local currency and push its value up. This move also reduced liquidity in the banking system, pushing up interbank interest rates—significantly complicating the popular carry trade strategy, where investors borrow in low-interest Hong Kong dollars and convert them into higher-yielding U.S. dollars.

Cheap Hong Kong Dollar Bets Get More Expensive
📉 Until recently, traders could cheaply borrow Hong Kong dollars, convert them into U.S. dollars, and pocket the yield difference. But May and June’s extreme volatility brought this game to a halt. With tighter liquidity and rising interest rates, HKMA is rewriting the rules.
📌 During the previous intervention in May, HKMA faced the opposite issue—a strengthening Hong Kong dollar. Back then, they injected more HKD into the market, slashing lending rates close to zero and fueling a speculator’s dream. Now, the situation has reversed, and the environment is getting much tougher.

Peg Under Scrutiny, but No Changes for Now
📊 Hong Kong’s currency peg, in place since 1983, is a cornerstone of the city's financial system. But May 2025 saw the steepest drop in the HKD since the peg was established, raising questions about its long-term sustainability. Despite this, Chief Executive John Lee Ka-chiu made it clear in early June: the peg isn’t going anywhere.
💬 “Maintaining the peg is crucial to our financial credibility,” Lee stated, aiming to calm market speculation.

Hong Kong Has the Firepower, But the Pressure Remains
💰 With foreign currency reserves exceeding $431 billion, HKMA has ample ammunition to defend the peg. However, carry trades remain tempting—the gap between U.S. and Hong Kong one-month interest rates is currently around 3.4%, drawing global investors into the game.

🧭 While the Hong Kong dollar has returned to its target range, the real question is: How long can it stay there?

#HongKong , #dollar , #economy , #worldnews , #forex

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#HongKong
VMS opted for Re7’s market-neutral crypto strategy to gain exposure with lower risk, avoiding direct bets on tokens like Bitcoin.
VMS Group, a Hong Kong multifamily offices with deep roots in private equity, is making its first push into digital assets as clearer regulations and institutional momentum pull traditional investors into the crypto space.
Bloomberg reported Tuesday that the firm, which manages nearly $4b for some of the city’s wealthiest families, plans to allocate up to $10m to Re7 Capital, a London-based hedge fund focused on decentralized finance strategies.
VMS managing partner Elton Cheung said the move reflects a shift in how the firm approaches liquidity and diversification.
Founded two decades ago, the Hong Kong firm has historically focused on private equity and long-term bets across sectors such as property, pharmaceuticals and technology.
But with companies staying private longer and exits becoming harder to time, the firm is now leaning into more liquid strategies, including digital assets.ù

VMS Chooses Hedged Approach to Crypto Over Direct Token Holdings
“We thought this was the right time because of growing demand and because we see clearer legislative and government support from various jurisdictions, as well as large institutional support and endorsement,” Cheung told Bloomberg. He did not disclose specific clients.
Instead of buying volatile tokens like Bitcoin, VMS chose to work with Re7, which offers a market-neutral strategy.
The fund earns yield by providing liquidity on decentralized exchanges and lending stablecoins, while hedging to reduce price swings. That approach aligns more closely with the risk frameworks of legacy family offices that are seeking exposure without speculative downside.
“The reason investors keep coming back to crypto is the asymmetry of risk and return,” said Re7 founder Evgeny Gokhberg. “Typically, people think about asymmetry in crypto as ‘lose it all or make a 100x.’ That’s rarely a fit for a serious allocator with a reputation to lose.”
Re7, founded in 2021, claims to have consistently delivered double-digit returns, though it did not disclose exact figures.

Next-Gen Wealth Influences Hong Kong Family Office’s Shift Toward Broader Digital Asset Adoption
VMS’ crypto strategy goes beyond hedge fund exposure. Zhi Li, who joined the firm in December to lead digital asset investments from London, said the team is studying broader applications, including blockchain payments and infrastructure.
One current area of interest is integrating crypto-based transactions at a real estate development the firm operates in Vietnam.
“There is very strong institutional and family interest in getting regulated digital asset exposure,” said Li. “We have seen the younger generation of families wanting to do something different.”
As family offices evolve to serve new wealth dynamics and generational preferences, VMS’s entry into crypto reflects a broader shift. Once reluctant, legacy capital is now stepping into digital assets, not for hype, but for structure, yield and strategic positioning.

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