Hong Kong approves the license for the first crypto loan platform in Asia

PawnHub became the first crypto loan platform to be licensed by the Hong Kong government. The license will enable the company to expand its cryptocurrency loan services and plan to partner with leading US crypto companies.

Cryptocurrency loans on the rise

Cryptocurrency loans are rapidly becoming an integral part of the cryptocurrency ecosystem. Although cryptocurrencies have existed for more than 10 years, loans are only beginning to emerge. PawnHub, which offers loans on its platform, is the first regulated company based in Asia.

The company intends to work with US cryptocurrency repositories to provide insurance coverage for up to $ 100 million for clients of bitcoin assets. In its press release, the company stated:

“Crypto loans are fast becoming an integral part of the cryptocurrency ecosystem, and PawnHub is the first regulated crypto-loan platform in Asia. Asia is home to some of the world’s largest cryptocurrency nations, such as South Korea, Japan, China, Hong Kong and Singapore. Thanks to its unique innovative offer, PawnHub is one of the most trusted options for creditors in the region. ”

Demand for products

Platforms for crypto loans saw a significant increase in demand for the cryptocurrency boom in 2017. BlockFi, supported by Galaxy Digital and Winklevoss Capital, is currently a leading provider of these services.

BlockFi CEO Zac Prince said:

“The demand for products in this sector includes cases of retail and institutional use for the purpose of earning revenue.”

The development of cryptocurrency lending platforms was enhanced at the end of last year, when the Securities and Futures Commission published a document describing the new licensing regime for digital asset exchanges.

Summary

For exaple Genesis Global Capital had a total of $ 3.1 billion in crypto loans revenue in 2019. This year, the demand for these services may continue to grow.