Hong Kong: Towards strict crypto regulation

During the Bloomberg Wealth Asia Summit which took place on May 9, the chief executive of the Hong Kong Monetary Authority (HKMA) made a statement regarding his country’s crypto regulations. He shared that Hong Kong is set to strengthen the regulatory framework governing the crypto market. He talks about tighter crypto regulations in Hong Kong.

A new licensing regime for suppliers

Considered the new preferred destination for crypto firms, Hong Kong has every interest in strengthen its regulatory framework. Along these lines, the current HKMA Managing Director, Eddie Yue, said: “Hong Kong is rolling out its new licensing regime for virtual asset service providers”. “Hong Kong will let investors create the ecosystem in the territory, but it will be strictly regulated”he added.

According to Julia Leung, the managing director of the Securities and Futures Commission, crypto exchange licensing guidelines will be released this month. But the launch of the project is scheduled for the 1^er June. This new regime will allow retail investors to trade cryptocurrencies.

Hong Kong: Stronger crypto regulations

According statements by Eddie Yue, crypto regulations in Hong Kong are already strict (and have been for a few years). However, he explains that adjustments are necessary to make them more “reasonable”. The goal: to bring more transparency to the crypto world.

Hong Kong authorities also want to regain its status as a “global digital asset hub”. The CEO of HKMA did not fail to mention that more than 80 companies have expressed their interest in applying for a license in Hong Kong. According to Yue, the city of Hong Kong has been attracting crypto companies since it unveiled its policies to develop the virtual asset industry in October.

Granted, crypto is now considered property in Hong Kong. Nevertheless, the country is always ready to welcome crypto companies. It is for this reason that Hong Kong provides for stricter crypto regulations.