Despite the rising US dollar index, Bitcoin's price has remained strong, potentially due to Nvidia's impressive surge in value. This week, important economic and financial data, including US consumer confidence and employment figures, are expected to impact the crypto market.

Two new associations, Hong Kong Licensed Virtual Assets Association (HKLVAA) and Web3 Harbour, have been formed by leaders in Hong Kong's Web3 industry. The aim of the associations is to promote growth and development of the virtual asset industry and decentralized internet. The founding board of Web3 Harbour includes industry leaders from Animoca Brands, DLA Piper, and WHub, with PwC Hong Kong joining as a knowledge partner. HKLVAA's founding members comprise representatives from Securities and Futures Commission (SFC)-licensed firms with approval for virtual asset activities in Hong Kong. Both associations are now open for membership applications and plan to initiate community activities, research projects, and educational programs starting in July.

Gate Group, the parent company of Gate.io, has launched a new virtual asset trading platform called Gate.HK in Hong Kong. The platform offers registration and trading services for cryptocurrencies like Bitcoin, Ethereum, and Litecoin, and aims to cater to both retail users and professional investors. Gate Group plans to expand the platform's capabilities in the future, with a focus on introducing additional services that comply with regulatory requirements in Hong Kong. The Hong Kong Securities and Futures Commission (SFC) has also announced its intention to permit licensed platforms to serve retail investors and enforce measures to safeguard them.

China Central Television (CCTV) recently aired a segment discussing the adoption of cryptocurrencies in Hong Kong, which has caught the attention of the crypto community.

Hong Kong has been identified as the most crypto-ready jurisdiction in the world, with the highest number of blockchain startups per 100,000 people and a significant number of crypto ATMs relative to its population, according to a study by Forex Suggest. The city is also attractive to investors as it does not tax capital gains on crypto.

The price of Conflux Network's CFX token experienced a surge after Hong Kong announced that it would allow retail investors to trade cryptocurrencies. This move is expected to attract more capital from Chinese investors. Despite the initial rally, the price of CFX has since dropped to 30 cents.

Hong Kong has confirmed that it will allow retail trading of certain cryptocurrencies starting from 1 June. This move was widely expected and is part of Hong Kong's broader effort to become a global crypto hub. Bitcoin reacted positively to the news, rising 1.7% to $27,293.64. However, Bitcoin and Ether are on track for their worst month of 2021, with historically low levels of weekly trading volume reported for major crypto assets. Experts anticipate that the cryptocurrency market will continue to consolidate and trade in sync with the overall market outlook, with a potential shakeout before a rebound as fears of an impending recession loom in the second half of 2021.

Hong Kong virtual asset trading platform Gate.HK has officially launched its website and opened registration and trading services. Gate.HK focuses on providing high-quality virtual asset trading experience for virtual asset investors, currently supporting spot trading of BTC, ETH, and LTC, and will gradually provide more trading services. It is reported that Gate.HK has prepared to apply for a license as a virtual asset service provider (VASP) to the Hong Kong Securities and Futures Commission in accordance with the latest regulatory requirements, aiming to provide compliant virtual asset trading services for Hong Kong users.

Bitcoin is currently trading above $27,000, but the cryptocurrency market lacks a clear narrative. While some days see a steady push upwards for Bitcoin and Ethereum, other days see a flight to quality. The altcoin market is currently struggling to break their 20-week moving averages, with most coins falling on their BTC pairs. Hong Kong's Securities and Futures Commission has proposed new rules for virtual asset trading platforms, including a requirement for exchanges to submit monthly financial reports and a ban on stablecoins for retail traders. Listed tokens must have a smart contract audit completed by an independent assessor and be included in at least two acceptable indices issued by two independent index providers.

The Securities and Futures Commission (SFC) in Hong Kong has announced new regulations for firms intending to offer retail crypto products, requiring compliance with asset custody and segregation rules. Early crypto license applicants can only list certain coins, and licensees may not advertise specific crypto assets or engage in proprietary trading or lending.