From June 1, cryptocurrency exchanges in Hong Kong will be allowed to offer services For regular customers after the government introduced the licensing system. A senior official recently stated that Hong Kong aims to establish itself as a global hub for the virtual asset industry.
This statement comes shortly before the implementation of new licensing regulations for cryptocurrency exchanges. In addition, the authorities are keen to revive Hong Kong as a contemporary financial center after the departure of many IT experts to other countries due to the COVID-19 pandemic.
According to reports, Eddie Yue, Chairman of the Hong Kong Monetary Authority (HKMA), confirmed that the city is preparing to launch a licensing system for cryptocurrency exchanges and other blockchain startups.
This measure aims to create a favorable atmosphere for the expansion of the cryptocurrency ecosystem in Hong Kong. At the Bloomberg Wealth Asia Summit on Tuesday, Yue stressed that the regulations governing the cryptocurrency industry in Hong Kong will meet the situation applied to the legacy financial industry.
Yue said on Tuesday:
What we want to do in Hong Kong is say, hey, this trend is going to continue. Let’s put the right regulatory framework in place using the principle of same business, same risk, same regulation.
Develop guidelines for banks dealing with cryptocurrency exchange clients
Eddy Yu announced that the Hong Kong Securities and Futures Authority (SFC) is developing guidelines for banks to enable them to work with clients of cryptocurrency exchanges. In addition, Yue revealed that the SFC will soon unveil new regulations allowing individuals to invest in digital currencies.
In response to several major cryptocurrency industry crises in the past year, governments around the world are implementing regulations for the industry. As a result of this trend, Hong Kong has become an attractive location for some businesses. One reason for this is the city’s recent announcement of its goal to establish itself as a hub for virtual assets on a global scale.
With its highly developed financial infrastructure and pro-business environment, Hong Kong offers a compelling option for crypto companies looking to establish themselves in a stable and supportive regulatory environment.
The Hong Kong Securities and Futures Commission (SFC) proposed new regulations allowing retail investors to buy large-cap tokens, such as Bitcoin and Ether, on licensed virtual asset platforms in February.
The city’s securities watchdog, the SFC, outlined the new rules to create a clear regulatory framework for cryptocurrency trading in Hong Kong.
Starting next month, all centralized virtual asset trading platforms that operate in Hong Kong or market their services to Hong Kong investors will need to obtain a license from the regulator under the new rules.
In addition, the Hong Kong Monetary Authority (HKMA) plans to establish a compulsory licensing regime for stablecoin-related activities by 2024. The HKMA published an advisory paper on the topic in February, outlining its proposals and seeking stakeholder opinions.
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