Hong Kong is taking significant steps to regulate and support the crypto industry. The government plans to license crypto assets exchange by the end of 2024 after 5 months review of crypto exchange platforms, Eric Yip said on Monday.
Eric Yip, Executive Director for Intermediaries at the Securities and Futures Commission (SFC) said that digital asset exchanges will move from preliminary permits to fully licensed status once they meet the SFC’s regulatory standards. These exchanges have responded to the SFC’s feedback, dedicated resources to meet regulatory requirements, and adopted sustainable, compliant business models.
Hong Kong has warmly welcomed crypto companies. In June 2023, it launched a licensing system for crypto trading platforms, allowing licensed exchanges to offer services to regular investors. So far, the regulator has approved licenses for three exchanges: OSL Exchange, HashKey Exchange, and HKVAX.
In June 2023, it launched a licensing system for crypto trading platforms, allowing licensed exchanges to offer services to regular investors. So far, the regulator has approved licenses for three exchanges: OSL Exchange, HashKey Exchange, and HKVAX. While, the SFC is currently reviewing applications from 14 crypto exchanges, including major names like Crypto.com and Matrixport.
Hong Kong Enhances Crypto Regulations
The SFC will create a panel by early 2025 composed of representatives from licensed exchanges to ongoing promote communication between the regulator and digital asset platforms. At the same time, Hong Kong also plans to set rules for over-the-counter (OTC) trading desks and custodial services for digital assets like cryptocurrencies.
However, Hong Kong Exchanges and Clearing Ltd. recently announced the coming soon launch of a Virtual Asset Index Series. This new index will provide updated Bitcoin and Ether pricing benchmarks tailored to Asia-Pacific time zones.
Christopher Hui Ching-yu, the Secretary for Financial Services and the Treasury, introduced a two-part plan to support the use of AI. This plan focuses on encouraging AI adoption while also managing its risks and addressing regulatory challenges.
Hui also announced plans to increase tax benefits for owning virtual assets. He said this is meant to make Hong Kong a leader in the digital asset market and encourage more investment in virtual assets.
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