On Feb. 20, the crypto pioneer said his working thesis at the moment is that the next bull run is going to start in the East.
He added that it will be a reinforcement of the principle that crypto is a global asset class. Each region can have its own rules and stance on crypto, but ultimately it spans the globe.
The comments come in the wake of a U.S. regulatory war on the industry as the Securities and Exchange Commission ramps up its enforcement. The financial regulator has gone after everything from stablecoins to staking to crypto custody, claiming that it all comes under securities laws.
“It will be a humbling reminder that crypto is a global asset class and that the West, really the US, always only ever had two options: embrace it or be left behind. It can’t be stopped. That we know.”
My working thesis atm is that the next bull run is going to start in the East. It will be a humbling reminder that crypto is a global asset class and that the West, really the US, always only ever had two options: embrace it or be left behind. It can’t be stopped. That we know.
— Cameron Winklevoss (@cameron) February 19, 2023
Hong Kong Narrative Grows
While Uncle Sam’s financial regulators are working as hard as they can to crush the industry for American retail investors, the outlook in Asia is far more encouraging.
In June, Hong Kong will open its doors to the digital asset industry as it angles for Asian crypto hub status. The country will officially legalize crypto buying, selling, and trading for all its citizens.
Although mainland Chinese citizens are still barred from trading the asset class in China, the Hong Kong opening will provide a path for Chinese institutions to enter crypto markets.
This has been widely seen as where the next major capital influx will come from.
Furthermore, large Asian banks such as DBS have already started the process of applying for licenses to offer crypto services to clients in Hong Kong.
Last week, Coinbase CEO Brian Armstrong echoed the sentiment:
“America risks losing it’s status as a financial hub long term, with no clear regs on crypto, and a hostile environment from regulators. Congress should act soon to pass clear legislation. Crypto is open to everyone in the world and others are leading. The EU, the UK, and now HK.”
Singapore is also very forward-looking regarding a fully regulated digital asset industry.
Asian Stablecoin Plans
Industry analysts have also predicted that an Asian stablecoin will also be rolled out during the next bull market cycle. China is particularly keen to distance itself from U.S. dollar hegemony.
Chinese government researchers proposed a digital currency based on a basket of Asian currencies in October 2022.
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