- Hong Kong is about to introduce a brand new licensing system for digital asset suppliers.
- It goals to control the digital belongings trade and totally shield buyers.
- Hong Kong’s regulation demonstrates a typical “one nation, two programs” mannequin.
At an govt 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 will likely be applied this month.
The regulatory framework goals to comprehensively cowl all elements of digital belongings, making certain the safety of buyers whereas lowering the dangers confronted by monetary establishments.
Collin Wu, a outstanding Chinese language put up, launched the event to the cryptocurrency neighborhood.
In his speech, Liang Fengyi acknowledged the challenges the cryptocurrency market has confronted previously yr, together with the default and chapter of a number of digital asset-related firms, together with FTX and Celsius.
Liang emphasised the significance of bringing digital asset service suppliers into the regulatory framework to revive belief and promote innovation. She famous that jurisdictions that beforehand embraced cryptocurrency have begun to tighten their oversight via regulation enforcement and regulatory measures.
In distinction, Hong Kong’s strategy to digital asset regulation has remained clear, constant and predictable.
Highlighting the distinctive “one nation, two programs” system, Liang burdened that Hong Kong’s new licensing system demonstrates the area’s dedication to its personal regulatory path. As cryptocurrency transactions stay banned in mainland China, Hong Kong is attempting to stability using new applied sciences and guarantee a managed and safe setting.
Liang defined that whereas Hong Kong shouldn’t be aiming to turn out to be a cryptocurrency buying and selling hub, it acknowledges the significance of cryptocurrency buying and selling within the broader digital asset ecosystem.
The brand new licensing system favors the appliance of associated applied sciences to monetary providers resembling bond labeling and mutual funds.
As well as, Liang acknowledged that Hong Kong continues to be within the early levels of growing a digital asset ecosystem, however expressed confidence that the presence of the digital asset fintech neighborhood in Hong Kong will speed up its growth.
