Edith Yeung Discusses Future of Crypto Development in Hong Kong
Edith Yeung, co-founder and general partner at Race Capital, has significantly influenced the crypto sector in Hong Kong. She was a seed investor in Solana, investing $250,000 when SOL was valued at $0.04, and also invested early in the Lightning Network. Since 2017, she has authored the influential China Internet report, an annual survey of technology trends in China.
Yeung, a speaker at Consensus Hong Kong, discusses Hong Kong’s development as a crypto hub, China's stance on crypto, her predictions for Solana, and a major crypto forecast for 2025.
Crypto Regulations in Hong Kong
Hong Kong currently has seven SFC-licensed virtual asset trading platforms. A clear licensing regime enhances investor confidence. However, liquidity remains essential; without active trading, even well-licensed platforms may struggle to attract investors.
Hong Kong's Role in the Crypto Sector
Hong Kong is likened to New York City in Asia, serving as a financial powerhouse with a rich history. It provides access to skilled TradFi talents necessary for building successful TradFi or DeFi companies.
Comparison of Crypto Markets: Asia vs. US and Europe
The U.S. has the largest institutional crypto market, while Asia shows the highest growth potential. In 2024, half of the top ten countries ranked by crypto adoption were in Asia. The U.S. will continue to influence crypto regulation, with Asia following due to its substantial young, crypto-native user base.
China's Stance on Crypto
While Hong Kong shows pro-crypto regulations, China's official stance against mining and speculation complicates the situation. With 220 million retail investors and significant savings, the timing for China's re-engagement with crypto remains uncertain amid broader economic challenges.
Investment in Solana
Yeung remains a long-term holder of Solana, appreciating the commitment of its founders and the developer community. At the 2024 Breakpoint conference, the engagement from traditional finance players like Fidelity and Citi indicates that blockchain technology is gaining acceptance.
Current Investment Focus
Yeung is a seed investor in Huma Finance, which excels in PayFi and stablecoin infrastructure, processing over $2 billion in stablecoin transactions in 2024. Race Capital continues to seek investments in internet infrastructure.
Surprising Predictions for 2025
Yeung predicts the establishment of a U.S. Bitcoin Reserve by the end of 2025, potentially boosting bitcoin prices and prompting global governmental interest.
Discussion Topics at Consensus Hong Kong
Yeung looks forward to discussing Hong Kong’s role in the crypto industry in 2025, China's complex relationship with crypto, and insights on Solana.