As a researcher and co-founder of Race Capital, I have had the privilege of witnessing the evolution of the crypto sector from the front row, particularly in Hong Kong – my birthplace and city where I was raised. My journey has led me to invest in groundbreaking projects like Solana and Lightning Network, providing me with a unique vantage point on the growth of this dynamic industry.
In 2025, I envision Hong Kong’s regulatory landscape becoming even more favorable for crypto companies, as licensing platforms will not only provide clarity but also attract increased liquidity – the lifeblood of any successful venture. However, it is crucial to remember that a well-maintained highway without traffic is still an empty road, and the same principle applies to our virtual highways.
When considering Hong Kong’s role in the crypto sector, I see it as the New York of Asia, with its bustling financial district teeming with traders, investors, and bankers. The city offers a rich talent pool for both TradFi and DeFi companies, making it an ideal location to build successful ventures that can drive innovation and growth in the crypto space.
In terms of regional competition, I believe that China’s stance on cryptocurrency will continue to evolve, with pro-crypto regulations slowly taking shape in Hong Kong serving as a positive indicator for the mainland. However, it remains uncertain when the Chinese government will fully embrace the crypto industry, given its focus on domestic economic challenges such as property and economic crises.
As a seed investor in Solana, I am excited about its future prospects, particularly the continued growth of its developer community and the influx of established players like Fidelity, Citi, and PayPal building on its platform. In 2025, I anticipate that Solana will continue to attract memecoin activity while maintaining its focus on technical advancements and long-term development.
Looking ahead, I am eager to discuss the role of Hong Kong in shaping the crypto industry in 2025, China’s relationship with cryptocurrency, and perhaps even share some insights about Solana – if I can avoid any NDA pitfalls! And as a light-hearted prediction for the future, I wouldn’t be surprised if we see the day when governments around the world start their own crypto dance-offs to attract investors. After all, who doesn’t love a good meme?
Being a native of Hong Kong and a general partner at Race Capital’s early-stage venture fund, I’ve had an unparalleled view of the crypto sector’s growth. I’ve been privileged to witness this evolution firsthand, with Solana being one of my most significant investments. Back when Solana’s SOL token was valued at mere pennies ($0.04), I invested $250,000. Additionally, I made an early investment in the Lightning Network. Beyond my venture capital work, since 2017, I’ve been writing the China Internet report – a comprehensive annual analysis of technology trends shaping China.
In this piece, we delve into the insights of Yeung, a scheduled speaker at Consensus Hong Kong. She shares her thoughts on Hong Kong’s evolving role as a cryptocurrency hub, offers her perspective on China’s approach towards digital currencies, provides her outlook for Solana, and offers a significant crypto prediction set for 2025.
As a seasoned enthusiast in the world of Web3 and Digital Assets, I can confidently say that this upcoming event in Hong Kong by Consensus is not to be missed. With a rich background in the digital asset space, I have attended numerous conferences, but none have compared to the influence and caliber of speakers at this event. From February 18-20, you’ll have the opportunity to immerse yourself in cutting-edge discussions, network with industry leaders, and gain valuable insights into the future of blockchain technology. To make the most of your experience, I highly recommend registering today using the code CoinDesk15 and saving 15% on your ticket. Don’t miss out on this unparalleled opportunity to advance your knowledge and connections in the digital asset world!
Interview has been condensed and lightly edited for clarity.
What are your thoughts on the evolution of cryptocurrency regulations in Hong Kong by 2025? Will there be an increase in the number of crypto businesses obtaining licenses from the Securities and Futures Commission (SFC) during that year?
It’s thrilling to notice that Hong Kong now boasts seven investment platforms for virtual assets, all licensed by the Securities and Futures Commission (SFC). For an investor, this well-defined licensing system is a significant leap forward. Regulatory transparency and consistency are like clearly marked roads — they provide investors with the assurance to proceed confidently without fear of sudden, unforeseen turns.
As a seasoned investor with over two decades of experience, I can attest that while obtaining licenses is crucial, it’s not enough to ensure success. Just like a well-maintained highway needs traffic to be useful, a trading platform requires active trading and liquidity to attract investors. In my career, I have seen numerous platforms with all the right permits but struggling due to lack of activity. So, when evaluating potential investments or ventures in this space, I always ensure to consider not only licensing but also the presence of an engaged and active trading community. This is a fundamental lesson I’ve learned from my years in the industry, and one that continues to guide me as I navigate the ever-evolving world of finance.
In Hong Kong right now, it’s essential not only to construct the physical infrastructure but also to ensure smooth traffic circulation. This is important because a fantastic structure without sufficient movement is similar to an unused highway leading to no destination.
How do you envision the future position of Hong Kong within the cryptocurrency industry, particularly in comparison to the U.S., and what potential roles could it play in Asia as a whole?
In simple terms, Hong Kong is often compared to New York City in Asia due to its significant role as a financial hub. Exchange Square, much like Wall Street, operates around the clock as a bustling financial powerhouse. It’s adorned with towering skyscrapers and teeming with traders, investors, and bankers who exude an unrelenting energy. If you are involved in cryptocurrency building or investing, you will discover a wealth of traditional finance professionals (traders, market makers, etc.) in Hong Kong.
As a crypto investor, I’ve realized that to establish a thriving TradFi or DeFi business, it’s crucial to attract unique talents that are not easy to come by, even in bustling tech hubs like Silicon Valley. The allure of Hong Kong lies in its financial legacy that spans over a century and a half, with its stock market tracing back to 1866. This rich history has nurtured a vast reservoir of seasoned professionals who can propel your venture towards innovation and prosperity.
What would you say is distinctive about HK/Southeast Asia for crypto compared to the US and Europe?
In terms of institutional investment, regulation, and development, the United States has the largest crypto market. However, Asia offers the greatest opportunity for crypto market expansion. By 2024, more than half of the top ten countries worldwide in terms of cryptocurrency adoption will be found in Asia.
Under the newly instated Trump administration, the United States will remain a trailblazer in shaping cryptocurrency regulations and encouraging institutional involvement, such as the potential launch of a BlackRock ETF. Given Asia’s extensive user base that is characterized by its youth and familiarity with digital currencies, it is likely to follow suit and adopt similar trends.
Based on my personal observations and experiences, it seems that China holds a complex stance towards cryptocurrencies. On one hand, there has been a significant amount of crypto activity within its borders, which suggests a degree of acceptance or tolerance. However, the official government position is against mining and speculation in the cryptocurrency market. This ambiguity can make navigating the Chinese crypto landscape challenging, as it may require keeping up with the evolving regulations and understanding the nuances between the government’s stance and the actions of the people.
It’s significant that Hong Kong, being part of China, is starting to adopt regulations favorable towards cryptocurrency. This trend suggests a potential shift in China’s stance towards digital currencies. It’s important to note that China boasts an impressive 220 million retail investors who collectively hold approximately $21 trillion in savings. Given the ongoing real estate crisis and a struggling economy, it’s challenging to predict when China will resume crypto-related business operations, as the government prioritizes resolving these pressing issues first.
As a seasoned investor with a focus on promising blockchain projects, I was among those who invested in Solana early on. To answer your question, yes, I still hold my initial investment in Solana. Now, as we look towards 2024, I can’t help but ponder if Solana will continue to be the hub of memecoin activity it was in previous years.
Considering its impressive growth and adoption rate over the past few years, I believe Solana has a strong potential to attract continued interest from memecoin creators and enthusiasts. However, it’s essential to remember that the crypto market is unpredictable, and the success of Solana in 2024 will depend on various factors such as regulatory developments, technological advancements, and overall market sentiment.
In my experience, I’ve learned that the key to successful investing lies in diversification, staying informed, and being patient. So while I remain optimistic about Solana’s future, I always advise others to do their own research and make informed investment decisions based on their risk tolerance and financial goals.
Indeed, it was a privilege to cross paths with the co-founders of Solana, Anatoly Yakovenko and Raj Gokal, in March 2018, even investing as a seed backer. I have been a committed long-term Solana enthusiast and advocate. What captivates me about them is their unwavering commitment to innovation and their championing of the developer community. The enthusiasm among developers at the 2024 Breakpoint conference was palpable, not just due to memecoins but also because of the vibrant community spirit.
Last year, the Firedancer team significantly progressed in technical aspects, and I’m thrilled to see Anatoly continuing to immerse himself daily in tech discussions with Kevin Bowers, Jump Trading’s chief science officer, and his team. What really gets me pumped is witnessing major financial institutions like Fidelity, Citi, and PayPal discussing their Solana projects at Breakpoint. This surge of established players not only reinforces the promising future of Solana but also underscores that blockchain technology is now ready for widespread adoption by the public.
What kinds of companies are you currently looking to invest in and why?
As a backer of Huma Finance – a pioneering company in PayFi development using Solana and a frontrunner in stablecoin framework – I am involved. In 2024, they executed over $2 billion worth of stablecoin transactions. At Race Capital, we remain committed to funding internet infrastructure. Pioneers who aim for longevity are unfazed by whether the market is on an uptrend or downturn.
What’s something you think will happen in 2025 that will surprise crypto folks?
By the year 2025, it’s anticipated that the U.S. will create a Bitcoin Reserve, given its substantial holdings of Bitcoin currently estimated at around 207,189 units. This significant hoard, valued at over $20 billion at current prices, is expected to provide a strong foundation for this endeavor. The aim is that this move will boost bitcoin prices, potentially inspiring other global governments to adopt similar strategies.
What are you most excited to discuss onstage in Hong Kong?
In 2025, Hong Kong’s significant contribution to constructing the cryptocurrency sector could be highlighted as its pivotal part within the crypto landscape. Meanwhile, China’s complex feelings towards cryptocurrencies, often characterized by both support and skepticism, may also be discussed. Furthermore, additional details about Solana, a prominent player in the industry, might be provided for further understanding of its role.
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2025-01-03 21:06