Deribit, the world's largest cryptocurrency derivatives exchange, aims to expand in Hong Kong, a sign of momentum as the market regulator seeks to make the city a focal point for virtual -allies.
The company was drawn from Dubai to Hong Kong because of its position as an international financial hub and its vibrant community from family offices and asset managers, who have a growing interest in cryptocurrencies, said Jean-David Pequignot, the company's chief commercial officer, who has 'To locate in the city.
“Hong Kong is this central financial hub in the world and a big one in Asia,” he said. “If regulators can solve the derivatives, it's a place we love.”
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On Wednesday, the Commission unveiled a new securities and future (SFC) Road map Enterprises for the virtual asset ecosystem. The scheme includes the study of the introduction of virtual asset derivative products for professional investors, or those with at least HK portfolios $ 8 million (US $ 1 million).
Jean-David Pequignot, Deribit Chief Commercial Officer. Photo: sheet alt = Jean-David Pequignot, Deribit Chief Commercial Officer. Photo: Leaflet>
Crypto derivatives trading was the lost piece of what Hong Kong's regulators currently allow, which focused primarily on licensing, Pequignot said.
“Derivatives can be speculative instruments for people who want to take adulterated bets into a market,” he said. “They can be dangerous, but they are also very powerful instruments for hedgerows and risk management.”
The risk control element could help investors navigate variations in the interchangeable crypto market, Pequignot said.
Deribit, which is licensed in Dubai, provides a trading platform for Bitcoin and Ether options. This derivative tool gives traders the right to buy or sell an asset at a pre -determined price at a given time without immediate commitment to buy or sell the basic asset.
“Asia is a big market for derivatives, with sophisticated investors who are very speculative in nature,” Pequignot said. “We want to be Asia. We only need to find the right place and time to engage with regulators and have a regulatory framework to work with.”
Singapore, another large Asian financial hub, has not yet established regulations for crypto derivative trading.