Regulation
Hong Kong to update cryptocurrency regulations and licenses
The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) are expected to “review requirements for virtual asset-related activities, if any,” responding to lawmakers’ questions about speeding up the cryptocurrency licensing process and easing distribution rules for intermediaries.
Hui stressed that licensed companies or registered institutions are allowed to distribute crypto-related products after informing regulators, without the need to change licensing terms.
This announcement came at a sensitive time, especially after many global exchanges including OKX, Gate.io and HTX withdrew their license applications in May before meeting a strict deadline set by the SFC.
Hong Kong’s new Capital Investment Scheme (CIES) has successfully attracted substantial global investment, with Invest Hong Kong (InvestHK) processing more than 300 applications since its launch on March 1.
The Immigration Department has so far granted 80 applicants “approval in principle” to invest in the region. The scheme now allows for greater flexibility in demonstrating financial capabilities, requiring applicants to show a minimum net worth of HK$1 million, maintained for the past two years.
The updated Wealth Management Connect program in the Greater Bay Area (GBA), known as WMC 2.0, continues to foster better opportunities for investors and brokerage firms.
Since its launch in February 2024, WMC 2.0 has increased the individual investment quota and reduced entry requirements for brokerage firms, encouraging smoother financial exchanges across borders.
The Securities and Futures Commission, together with the China Securities Regulatory Commission, is actively integrating more brokerage firms into this initiative.
The virtual asset (VA) industry, Hong Kong regulators, the SFC and the HKMA, have fine-tuned the regulatory landscape. A joint circular issued in December 2023 clarifies that intermediaries considering engaging in VA business must notify the SFC and the HKMA in advance.
Read also : Hong Kong Regains Status as Cryptocurrency Hub as Crypto Firms Return to Country