The CEO of Hong Kong’s Securities and Futures Fee (SFC), Julia Leung Fung-yee, addressed Hong Kong’s embrace of Web3 regulation following the collapse of crypto change FTX final November, noting that crypto buying and selling is a vital a part of the digital asset ecosystem.
Throughout a current speech, Leung reportedly defined that the brand new licensing system for digital asset suppliers will be certain that traders are protected whereas taking into consideration the dangers that monetary establishments face. Within the chief’s view, incorporating digital property suppliers into the regulatory system was the one technique to embrace innovation and strengthen market belief after FTX chapter.
Hong Kong used the FTX collapse to scale back regulatory dangers related to centralized exchanges. In December, almost 30 days after the change disaster unfolded, its legislative council included digital asset service suppliers in the identical laws that governs conventional monetary establishments.
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The brand new guidelines carry strict AML tips and investor safety legal guidelines to digital exchanges seeking to open a enterprise in Hong Kong. It additionally introduces a brand new licensing scheme that permits retail traders the flexibility to commerce in digital property. Till lately, digital property buying and selling was restricted to skilled traders and merchants with not less than $1 million in bankable property.
In response to Leung, Hong Kong’s cryptocurrency licensing system is an efficient instance of China’s “one nation, two methods” coverage. Cryptocurrencies have been banned in Mainland China since 2021, whereas Hong Kong took a unique method by selling a welcoming surroundings for crypto enterprise.
Over the previous 12 months, greater than 150 Web3 corporations have established operations in Hong Kong’s Cyberport — a digital hub created by the native authorities to advertise innovation. The inflow got here after the federal government allotted 50 million yuan ($7 million) to hurry up the event of Web3.
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