CoinFund Expands to Hong Kong Citing Favorable Regulatory Environment for Crypto

Published: November 21, 2023 at 3:21 am Updated: November 21, 2023 at 3:22 am

Edited and fact-checked:
November 21, 2023 at 3:21 am

In Brief

Crypto venture capital firm CoinFund is expanding its presence in Asia with its first hire in Hong Kong, citing favorable environment for innovation.

CoinFund Expands to Hong Kong Citing Favorable Regulatory Environment

Crypto-focused venture capital firm CoinFund, based in New York, is expanding its presence in Asia with its first hire in Hong Kong. The decision to establish a foothold in the city is driven by its favorable environment for innovation and experimentation within the realms of crypto and Web3 technologies.

Hong Kong appealed to CoinFund for several reasons, such as the city’s status as a large and reputable capital market, its new plan to attract talent and its importance throughout the evolution of the crypto industry.

Established in the US in 2015, CoinFund is strategically expanding its presence in Asia, as the firm sees more crypto trading and entrepreneurs coming from the region.

Hong Kong and China have historically played a significant role in the crypto landscape, especially in the early stages when many exchanges began operations in the city. This historical context was another meaningful factor for the firm in making this move.

Crypto Firms Expand to Hong Kong for Regions Potential

The VC’s decision follows Hong Kong’s recent implementation of a regulatory framework for virtual assets. A year ago, the city pledged to embrace the cryptocurrency sector and become a hub for virtual asset businesses, with policies including a mandatory licensing regime that enables centralized exchanges to accept retail investors.

In the US, crypto firms have voiced concerns about the lack of clear cryptocurrency regulation, especially as authorities have increased enforcement actions targeting the sector.

As capital flows out of the US and goes predominantly global, a significant portion has found its way to Asia.

Lately, the US-based cryptocurrency VC firm Hivemind Capital Partners also announced expansion to Hong Kong with the appointment of a new head of Asia.

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About The Author

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and engagement with scientific writing.

Alisa Davidson