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Why Hong Kong’s crypto crown is slipping

Territory’s flourishing industry is increasingly at odds with China’s tougher stance

Hong Kong has played a pivotal role in the short history of cryptocurrencies. The Chinese territory is the birthplace of some of the world’s largest crypto companies and the industry’s most pioneering inventions, with trillions of dollars traded through its homegrown exchanges.

Tether, the world’s largest stablecoin, was launched here. Crypto groups such as FTX Trading, valued at $18bn, and blockchain start-up Block.one, which raised $10bn this year, have grown at a rapid pace from their Hong Kong homes, backed by the same investors that nurtured Facebook and PayPal.

The magic formula that has earned the territory its crypto bragging rights is the same mix of financial expertise and entrepreneurial spirit that created billionaire tycoons out of property speculators and plum sauce manufacturers. Most of Hong Kong’s largest crypto exchanges were started by those who left high-flying careers at its international banks.

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