Hong Kong To Introduce New Licensing for Crypto Exchanges This Month

• Hong Kong is about to implement a brand new licensing system for digital asset suppliers.
• It goals to control the digital asset trade and defend traders comprehensively.
• Hong Kong’s regulation showcases the everyday ‘one nation, two programs.’

In an government dinner in Bangkok, Liang Fengyi, CEO of the China Securities Regulatory Fee (CSRC), introduced that Hong Kong’s new licensing system for digital asset service suppliers can be carried out this month. 

The regulatory framework goals to comprehensively cowl all facets of digital belongings, guaranteeing investor safety whereas addressing the dangers confronted by monetary establishments.

Collin Wu, a outstanding Chinese language report, introduced the event to the crypto neighborhood.

Throughout her speech, Liang Fengyi acknowledged the challenges confronted by the crypto market prior to now yr, together with the default and chapter of a number of digital asset-related firms, together with FTX and Celsius. 

Liang pressured the significance of incorporating digital asset service suppliers into the regulatory system to rebuild belief and foster innovation. She famous that jurisdictions that beforehand embraced crypto have begun tightening their supervision by way of legislation enforcement and regulatory measures. 

In distinction, Hong Kong’s method to regulating digital belongings has remained clear, constant, and predictable.

Highlighting the distinctive “one nation, two programs” framework, Liang underscored that Hong Kong’s new licensing system demonstrates the area’s dedication to its regulatory path. As crypto transactions stay prohibited in mainland China, Hong Kong goals to stability embracing new applied sciences and guaranteeing a managed and safe atmosphere.

Liang clarified that whereas Hong Kong doesn’t aspire to develop into a crypto buying and selling middle, it acknowledges the significance of crypto buying and selling inside the broader digital asset ecosystem. 

The brand new licensing system welcomes the appliance of associated applied sciences to monetary companies, similar to bond tokenization and funding funds. 

Moreover, Liang acknowledged that Hong Kong remains to be within the early levels of creating a digital asset ecosystem however expressed confidence that the presence of the digital asset fintech neighborhood in Hong Kong will speed up its improvement.