Hong Kong's New Crypto Policy Takes Effect Soon! 6 Crypto Projects Worth Investing In

Hong Kong's new crypto regulatory framework will officially take effect on June 1st, implementing a new licensing system for virtual asset service providers and advancing the legalization process for cryptocurrency exchanges, providing clear regulation and guidance for virtual asset trading. Exchange licenses are expected to be issued gradually, accelerating offshore cryptocurrency processes, with Web3 infrastructure being progressively supported, and the Hong Kong sector continuing to heat up.

From an investment perspective, what investment opportunities does Hong Kong's new crypto policy bring? veDAO has researched many innovative projects that benefit from Hong Kong's new regulations, recommending the following 6 crypto projects worth long-term investment.

## 1. NEO (NEO)

NEO is a smart contract platform established in 2014, formerly known as Antshares. It is a Layer 1 blockchain commonly referred to as "China's Ethereum." NEO aims to replace Ethereum and become the most developer-friendly blockchain.

NEO is a smart contract platform established in China and is a Chinese project that has received government support. It positions smart contract technology as a strategic priority for national development and is China's first original blockchain underlying protocol. NEO places great emphasis on compliance and regulation, which helps it gain trust and legitimacy in China's highly regulated business environment.

Although the NEO project maintains a low profile with minimal promotion, it is a long-term oriented project. With the rollout of Hong Kong's new crypto regulations, the market remains optimistic about this token's price in the long run, with potential for significant future appreciation.

## 2. VeChain (VET)

VeChain is a Layer 1 blockchain focused on supply chain optimization, an innovative blockchain aimed at improving the efficiency and transparency of supply chain processes. The project was founded in 2015 by Sunny Lu, former Chief Information Officer of Louis Vuitton China, and has close ties with China. This includes long-term partnerships with several major Chinese companies, such as state-owned enterprise China Tobacco and Haier, one of China's largest home appliance manufacturers. It also actively collaborates with the Chinese government on development projects, including a pilot project with the Guizhou Gui'an New Area government to develop a blockchain-based carbon credit trading platform. VeChain has also been recognized as a "National High-Tech Enterprise" by China's Cyberspace Administration, enhancing its reputation and credibility in China.

VeChain provides solutions for real-world enterprise and supply chain problems. Many projects position themselves as solution providers, but in reality, they provide solutions for problems that don't affect many people. VeChain truly provides necessary solutions for real-world problems that impact the masses. The VeChain token was initially coded as VEX, later changed to VET in August 2018. VET tokens can be purchased on several major centralized cryptocurrency exchanges: Crypto.com, Huobi, KuCoin, Gate.io, etc.

## 3. Conflux (CFX)

Launched in 2018, Conflux is a public and permissionless Layer 1 blockchain. Conflux is building a borderless trading and technology ecosystem for cryptocurrency projects with global vision, extending from China to North America, Russia, Latin America, Europe, Africa, and other parts of the world. The Conflux ecosystem currently has 8 products. Compared to Ethereum's ecosystem with thousands of DApps, Conflux faces considerable pressure, but this also represents opportunity. The Conflux ecosystem includes browsers, asset management tools, cross-chain exchanges, lending DeFi, NFTs, insurance, and more. Currently, Conflux's related ecosystem covers Sushiswap, DODO, Pancakeswap, Binance, Gate.io, Chainlink, Waves, and more, including the decentralized exchange Moonswap.

Conflux brands itself as China's only compliant, open, and public blockchain. In China, it actively collaborates with international brands and government organizations, developing cooperation projects related to blockchain and metaverse technology. The Shanghai government has recognized Conflux as a "Key Innovation Blockchain Platform" and provided funding for its development. Additionally, Conflux has established partnerships with several major Chinese companies, including Baidu, China's leading search engine, and the Shanghai Wine and Liquor Blockchain Alliance, which uses Conflux to track the origin and authenticity of wine and liquor products, as well as collaborations with Chinese McDonald's, Oreo, and other enterprises.

Conflux's token economy is built around the CFX token. CFX token holders can use it to pay transaction fees and earn CFX token rewards through staking and storage leasing, participate in network governance, and CFX is also used to reward miners who ensure the network's secure operation. CFX trades on mainstream exchanges including Binance, OKX, Gate.io, and others.

On February 16 this year, Conflux announced a collaboration with China Telecom to launch the Hong Kong virtual blockchain BSIM card. The BSIM card combines Conflux's exclusive cryptographic technology, with built-in TreeGraph, dPoS, PoW basic functions, and wallet capabilities. The BSIM card features unique isolated partitions for public and private keys, allowing private key signing while inserted in phones and even private key management, expected to directly enable bridging to Web3 and Metaverse on supported phones.

The market expects Conflux to benefit from Hong Kong compliance and BSIM's potential to significantly increase wallet adoption, triggering a nearly 300% surge in CFX token price in a single week, breaking through $0.3528 on the morning of May 21. As China's attitude toward the crypto industry gradually softens, Conflux may become the country's only compliant blockchain network.

## 4. Huobi (HT)

Huobi is a leading global cryptocurrency exchange currently operated by Tron founder Justin Sun. The company is currently relocating its headquarters from Malta to Hong Kong, intending to expand its Hong Kong business footprint, as Huobi believes China will continue to show enthusiasm for digital assets. This move positions Huobi advantageously to potentially become the first to obtain official licensing to operate in China, which could give Huobi the largest market share as the country's centralized exchange.

Huobi has already earned a reputation in China with its innovative products and services. Huobi was among the first exchanges to offer margin trading, and they have launched multiple initiatives to facilitate their users' entry into Web3, such as Huobi Wallet, which allows users to securely store and manage digital assets. Additionally, Huobi has established partnerships with several major Chinese companies, including JD.com and CITIC Group, further solidifying its legitimacy in China.

On November 22, 2022, the original Huobi Global website announced that Huobi Global would be simplified to Huobi, with the Chinese brand name officially named "火必" (Huobi). On May 27, Huobi announced its official entry into the Hong Kong market, launching Huobi Hong Kong, and is ready to provide cryptocurrency trading services to users. Starting June 1, users can buy, sell, and hold various cryptocurrencies through Huobi Hong Kong, including Bitcoin (BTC), Ethereum (ETH), Tron (TRX), Dogecoin (DOGE), Shiba Inu (SHIB), and other mainstream coins listed in independent indices.

## 5. Filecoin (FIL)

Filecoin is a distributed network aimed at storing humanity's important information. People can use Filecoin to store and retrieve data while collectively building a powerful and active distributed storage marketplace. Filecoin is a distributed storage network based on IPFS and serves as IPFS's incentive layer. Filecoin was one of the earliest IPFS promoters in the crypto market, establishing itself as a leader in the blockchain storage sector.

The Filecoin network consists of numerous storage providers and developers. Its innovative use of cryptographic proofs ensures data is stored securely and reliably over long periods, with the Filecoin network already storing substantial amounts of data. Filecoin is connected to China in multiple ways, including receiving significant investment from Chinese companies including Sequoia China and Distributed Capital. Additionally, several Chinese blockchain startups have chosen to build on the Filecoin network, including IPFSMain, which provides decentralized data storage and transmission services for the Chinese market.

Recently, Hong Kong-listed Times Global Group Holdings Limited announced that its wholly-owned subsidiary purchased 12,000 FIL tokens through on-exchange trading, with a total cost (excluding fees) of $639,942, at an average price of $53.33 per token. Times Global Group is financially strong, and with its backing, Filecoin is expected to go further in the future.

## 6. Alchemy Pay (ACH)

Alchemy Pay is the world's most adaptive crypto payment infrastructure, providing decentralized payment and derivative financial solutions for over one million global merchants and cryptocurrency ecosystem users.

Alchemy Pay is a leading decentralized digital currency payment solution and technology provider in the Asia-Pacific region, having developed Asia's first hybrid crypto-fiat payment solution. It can provide fast, secure, and convenient aggregated digital currency and fiat payment technology solutions for over one million online and offline merchants. Alchemy Pay is currently committed to launching its second-generation decentralized payment system (ADPS2.0), integrating DeFi aggregation and the powerful Alchemy Trust system, creating a trusted authentication pathway between centralized and decentralized systems. ACH is the token issued by Alchemy Pay, used for ecosystem incentives, system access consumption, and governance, with a total supply of 10 billion tokens, of which 51% will be mined through continuous payment and financial ecosystem activities after ADPS2.0 goes live.

In February this year, Alchemy Pay announced new support for purchasing cryptocurrencies through Google Pay. Meanwhile, Alchemy Pay will be the first payment solution to enter the Hong Kong market. From April 9 to May 9, Alchemy Pay placed month-long cryptocurrency public welfare promotional advertisements at Hong Kong International Airport, buses, and other landmark buildings, with the theme "I love Hong Kong, I love Bitcoin, I love ACH," to thank Hong Kong for its openness and inclusiveness toward the Web3 industry. ACH is expected to have further upward potential after Hong Kong's new policy officially takes effect.

## Conclusion

Hong Kong's new policy represents China beginning to relax regulatory control over the crypto industry. The Chinese cryptocurrency narrative has consistently attracted attention from crypto market KOLs and is increasingly valued by the market. This brings many benefits to the crypto industry, and the 6 China-related projects listed above have already shown significant growth in price and adoption.

China's increasingly prominent position in the cryptocurrency field is reflected in the above 6 major Chinese projects: NEO, VeChain, Conflux, Huobi, Filecoin, and Alchemy Pay. These innovative efforts are pushing boundaries across various fields, such as supply chain management, decentralized storage, smart contract platforms, and crypto payments. With China's relaxed regulatory stance, strategic government support, and solid partnerships with renowned Chinese companies.

As China's cryptocurrency ecosystem continues to flourish, the above 6 projects can leverage China's enormous market potential and contribute to global digital currency adoption, which will be long-term positive for these 6 project tokens.