Hex Belief, a seven-year-old virtual-asset custody providers supplier to establishments, expects to grow to be worthwhile this 12 months after reducing prices in 2023 amid a surge in cryptocurrency costs in latest months, co-founder and chief govt Alessio Quaglini instructed the South China Morning Publish in a latest interview.
“There’s been an actual shift from September and October until now,” Quaglini mentioned. “We see extra buying and selling volumes and we see extra urge for food for dangerous belongings.”
After reducing prices by about 20 per cent all through 2023, Hex Belief sees the cryptocurrency market’s revival “immediately translating into profitability” for the corporate, he mentioned.
Hex Belief plans to “begin conversations to construction a (new funding) spherical” this 12 months, however is but to find out whether or not this could be pursued within the first or second half of this 12 months, as buyers stay cautious, in response to Quaglini.
Hong Kong vows to manage stablecoins, over-the-counter crypto outlets
Hong Kong vows to manage stablecoins, over-the-counter crypto outlets
Hong Kong’s proposed regulatory framework for the broader virtual-asset trade might create headwinds for Hex Belief’s operations within the metropolis as a result of cryptocurrency custodians will not be coated, in response to Quaglini.
Whereas Hex Belief holds a Belief or Firm Service Supplier licence in Hong Kong that enables it to supply custody providers, the corporate wouldn’t be capable to work with licensed virtual-asset exchanges underneath town’s new guidelines.
Beneath Hong Kong’s new regime, Hong Kong’s licensed centralised virtual-asset exchanges should function their very own custody options, as an alternative of utilizing third-party custodian providers, in response to the proposed regulatory framework.
However an even bigger concern for Hex Belief is Hong Kong’s proposed regulation for OTC providers, Quaglini mentioned.
Hong Kong authorities suggest licensing regime for digital asset trade shops
Hong Kong authorities suggest licensing regime for digital asset trade shops
The proposed guidelines would prohibit trades between a digital asset and one other digital asset, until the OTC providers supplier had additionally utilized for a cryptocurrency trade licence.
“Now we have a sizeable OTC enterprise right here in Hong Kong,” Quaglini mentioned. Whereas Hex Belief is “tremendous keen” to be regulated by the CCE, he indicated that the agency can’t settle for that it should undergo a cryptocurrency trade to conduct virtual-asset-to-virtual-asset trades.
“If that’s the case, I believe we have to transfer (our OTC operations) out of Hong Kong,” he mentioned.