A New York-based cryptocurrency-focused venture capital (VC) firm is expanding into Asia after making its first hire in Hong Kong, as US regulatory issues force some cryptocurrency companies to set up shop in the region and the city goes red. Off the mat. Banner for virtual asset business.
CoinFund, founded eight years ago, is seeing more cryptocurrency exchanges and more cryptocurrency entrepreneurs from Asia, where the company hopes to expand its reach, said Dimitri Lapidus, CoinFund's new senior analyst in Hong Kong. with the post office.
"The big trend we're seeing is that capital is leaving the US and becoming predominantly global, and a lot of it is going to Asia," said Lapidus, who is tasked with strengthening the company's presence in the region.
The venture capital firm's move comes after Hong Kong recently implemented a regulatory framework for virtual assets. Cryptocurrency companies in the US have complained about the lack of clear cryptocurrency regulation after authorities took enforcement action against the industry.
Hong Kong crypto power players welcome Web3 regulation after JPEX scandal
Hong Kong crypto power players welcome Web3 regulation after JPEX scandal
American venture capital firm Hivemind Capital Partners expanded into Hong Kong earlier this month with the hiring of a new head for Asia, according to cryptocurrency news outlet The Block.
The city pledged a year ago to embrace the cryptocurrency industry and become a virtual asset trading hub with policies including a mandatory licensing system that allows centralized exchanges to accept retail investors. Meanwhile, Singapore and Dubai have also become attractive destinations for cryptocurrency companies, as both have established new licensing regimes for the industry.
CoinFund came to Hong Kong because of advantages, including its status as a large and reliable capital market, its innovative plans to attract talent and the city's prominence in the growing cryptocurrency industry, Lapidus said.
"If you look at the history of the development of this industry, there has always been very active participation from Hong Kong and China, especially in the early days," he said, adding that Hong Kong has many cryptocurrency miners and many exchanges. started in the city. "That's why I consider it one of the most natural places for innovation and experimentation."
Cryptocurrency investments continue to fall as the market tries to recover from last year's series of declines. According to Pitchbook data, the industry invested $1.8 billion in 309 deals in the third quarter of this year, down 28% from the previous quarter and nearly 70% from the same period last year.
However, in July CoinFund raised $158 million for a new fund aimed at supporting early cryptocurrency startups. According to Lapidus, although it plans to expand into Asia, there is no mandate on how much to invest in companies in the region.