Regulation
Hong Kong to adapt cryptocurrency regulations to industry developments
Hong Kong Financial regulators ready to adjust their approach cryptocurrency Regulations will evolve as the industry grows, according to Finance Secretary Christopher Hui.
Speaking at a parliamentary sessionMr Hui said the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) would take market trends into account when developing regulations. He said:
The HKMA and the SFC will monitor market developments and review the requirements for AV-related activities as appropriate.
Hui’s comments came in response to questions about potentially speeding up the cryptocurrency licensing process and easing rules for intermediaries distributing crypto assets. He clarified that licensed companies and registered institutions can distribute cryptocurrency-related products after notifying regulators, without needing to change their licensing terms.
This discussion follows the withdrawal of license applications by several large companies. global crypto exchangesincluding OKX, Gate.io and HTX, before the June 1 deadline set by the SFC. After that date, all cryptocurrency trading platforms operating in Hong Kong must be licensed or “deemed licensed” applicants.
Hong Kong’s stringent licensing regulations have drawn criticism from some quarters. Lawmaker Duncan Chiu has expressed concern that overly strict rules have deterred major global exchanges from entering the Hong Kong market. recent opinion pieceChiu argued that the withdrawals undermined confidence in Hong Kong’s efforts to establish itself as a Web3 hub.
Hong Kong’s Crypto Landscape
Hong Kong approved the launch of six spots Bitcoin (BTC) And Ethereum (ETH) The exchange-traded funds (ETFs) were launched in early May. The products in question were issued by China Asset Management (ChinaAMC), Bosera Asset Management and Harvest Global Investments and allow exposure to cryptocurrencies without technical expertise.
Earlier this month, the Banque de France (BDF) and the Hong Kong Monetary Authority also signed a memorandum of understanding on bilateral collaboration on the development of wholesale digital currency and central bank tokenization. Both regulators are willing to explore interoperability between their digital currencies and cross-border transactions.