When the crypto-industry was launched back in 2009, the space did not have much importance or market worth. This is the reason why the industry never caught the attention of regulatory authorities and other law enforcement authorities.
Initially, the regulators and the governments from all over the world did not pay much attention to the sector. They considered that paying any attention to it would just be a waste of time and energy, as it would never grow.
While the regulators and the governments continued ignoring the sector, the traditional financial sectors did not. Since the launch of the cryptocurrency sector, traditional financial institutions such as banks and payment service providers continue opposing it.
They always stressed the unregulated and non-compliant nature of the cryptocurrency industry. They also criticized the decentralization of the crypto-blockchain sector and hoped that someday, the authorities would take notice.
In the meanwhile, the cryptocurrency industry continued growing bigger in terms of its market capitalization and user base. Before the global regulatory authorities could notice, the cryptocurrency industry had achieved a user base of 34 million active users by 2020. Still, the cryptocurrency industry was growing at a low pace while the traditional financial sectors continued opposing it.
Then, as the year 2020 came to its second half, the cryptocurrency industry showed its true potential and by the end of 2020, its user base grew over 100 million.
Since then, the cryptocurrency industry has continued growing fast and bigger. That is when the regulatory and law enforcement authorities worldwide started noticing cryptocurrencies. This was the moment when the authorities sniffed the dangers and risks involved if the crypto-sector would continue operating in a completely unregulated environment.
As of now, the total user base of the cryptocurrency industry is over 200 million, with an overall market capitalization of over $2 trillion. Now, the traditional financial sector has started adopting cryptocurrencies while the authorities are worried about what the financial sector had warned them about in the first place.
The countries that have contributed a lot to the growth of the crypto sector include Hong Kong, Singapore, Japan, South Korea, Russia, China, and many more.
However, after becoming a hub for the crypto-sector, Hong Kong regulators are concerned about the cryptocurrency industry’s current market presence. Just recently, the Securities and Futures Commissions’ (SFC) senior executive from Hong Kong has shared his concerns about the crypto-sector.
Liang Fengyi, the deputy chief executive at the SFC has stated that the Hong Kong authorities need to do more in order to control the crypto-sector. The number of fraudulent activities in the cryptocurrency sector is constantly increasing and they are also affecting Hong Kong investors.
Therefore, the regulatory authorities in Hong Kong need to introduce much stricter policies and regulations they already have in place for the crypto-sector in the country.