Taking a significant first step towards legally introducing crypto, Hong Kong is all set to permit its crypto exchanges to offer their services to the citizens from June 1st after establishing a licensing system. A statement made by a senior official signifies that Hong Kong has prepared itself and is ready to embrace the influx of virtual assets into its economy. The new licensing regime claims to empower the nation and revive it as a contemporary financial hub, after the brief lull due to COVID-19.
Eddie Yue, the head of the Hong Kong Monetary Authority (HKMA) has recently confirmed that the new licensing regime will cover under its ambit, all types of crypto exchanges and several blockchain start-ups. The system aims at providing a conducive environment for the augmentation of the cryptocurrency ecosystem across the nation. At the Bloomberg Wealth Asia Summit, held on Tuesday, Yue reiterated the importance of putting in the correct regulatory framework and thereby navigating the crypto industry with the help of appropriate mechanisms.
Further, Yue stated that the Hong Kong Securities and Futures Commission (SFC) is equipping banks with relevant guidelines which would enable them to work with customers of crypto exchanges. Additionally, SFC is said to be mulling over the formation of new guidelines to allow individuals to invest in digital assets. This has increased the nation’s appeal in the eyes of crypto traders and has generated quite a buzz worldwide, with major countries shying away from legalizing the platform.
SFC has further proposed brand new regulations to allow retail investors to acquire market capitalizations, like Bitcoin and Ether, subject to it being available on licensed virtual asset platforms, with a clear regulatory framework put in place. With its pro-business environment and highly functioning financial infrastructure, Hong Kong offers a lucrative opportunity for crypto firms to germinate in a sturdy and supportive regulatory economy.
