Cryptocurrency companies are rushing to Hong Kong in the hope that the city’s high-profile push to become a hub for digital assets will help them to capture demand from mainland China to buy and sell tokens.Hong Kong is perceived by some companies to be more crypto-friendly than rival Singapore, which cracked down on the sector last year after several high-profile collapses in the industry. The city is planning a new regulatory regime for exchanges and legalising crypto trading for retail investors.

Businesses expanding in Hong Kong are hoping to tap soaring demand to trade digital coins from mainland China, which remains the world’s fourth-largest crypto market despite Beijing’s 2021 ban against the sector.

“A lot of the Chinese capital is looking for smarter, safer ways to invest?.?.?.?being in Hong Kong naturally makes more sense than anywhere else,” said Henry Liu, chief executive of crypto exchange BTSE, which this month said it intended to apply for a licence in the city.