Hong Kong regulators are poised to overhaul cryptocurrency rules in a bid to bolster the city’s industrial development. The move, unveiled by the finance secretary, signals a proactive stance amid the sector’s burgeoning growth. Christopher Hui, the Secretary for Financial Services and the Treasury, disclosed these plans during a parliamentary inquiry on July 3rd.
The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) will monitor market trends closely and adjust regulations governing virtual asset (VA) activities as necessary. Responding to queries from lawmakers, Hui indicated potential expedited procedures for verifying cryptocurrency licenses and relaxed guidelines for intermediaries facilitating crypto asset distribution.
This regulatory scrutiny coincides with Hong Kong’s establishment of a legislative subcommittee dedicated to the cryptocurrency industry, underscoring its commitment to fostering a conducive regulatory environment. Johnny Ng, a prominent lawmaker, highlighted the subcommittee’s role in soliciting policy feedback from the global Web3 community.
In February 2024, Hong Kong unveiled strategic initiatives aimed at enhancing security and transparency within its rapidly expanding cryptocurrency market. Treasury and Financial Services Secretary Christopher Hui outlined plans to swiftly regulate stablecoins and over-the-counter (OTC) cryptocurrency trading. These measures mark a significant stride towards fortifying the cryptocurrency ecosystem with robust oversight.
Disclaimer: The opinions expressed in this article are for informational purposes only and should not be construed as financial or investment advice. Investing in cryptocurrencies carries inherent risks of financial loss.
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