Published
1 year ago on
April 27, 2023
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Hong Kong, the soon-to-be promised land for crypto, will reportedly issue regulatory guidelines on its licensing regime for crypto exchanges in May.
Hong Kong’s Securities and Futures Commission (SFC) is set to publish guidelines on its licensing framework for cryptocurrency exchanges in May.
According to reports by Bloomberg, which cites the SFC’s Chief Executive Officer Julia Leung, the consultation process leading up to the regulatory framework, garnered over 150 responses from industry players.
Julia Leung, CEO, the Securities and Futures Commission Hong Kong speech at Bloomberg #virtualasset #esg #wealthconnect #ifc pic.twitter.com/M1eCHLP1VZ
— Finance Mandarin 漢通金融學院 (@FinanceMandarin) April 27, 2023
Trading Platforms to Offer Retail Trading Services from June
According to Bloomberg, the licensing regime will welcome support to crypto trading platforms that will offer trading services to retail investors from June 1.
Christian Hui, the Secretary for Financial Services and the Treasury in Hong Kong, said during a speech in March that the city received overwhelming interest from more than 80 crypto-related firms that want to set up shop in the city. Secretary Hui added that regulations planned since last year to establish a licensing regime for virtual asset service providers (VASPs) would take effect in June.
Reuters reports that OSL and Haskey are among the only trading platforms already receiving licenses from the SFC.
Hong Kong’s Crypto Ambitions
In October, the city announced its desire to become the next global crypto hub. Since indicating its ambitions, Hong Kong regulators have been adjusting its regulatory framework to attract crypto firms struggling to establish themselves in an environment conducive to developing and using crypto assets.
Hong Kong’s commitment to virtual assets has grabbed the attention of firms struggling with the lack of clear guidelines in the US. Several firms such as Coinbase, Kraken, and Binance have warned that they might exit the US if regulators fail to provide clear rules.
In response to regulatory confusion in the US, many crypto firms have begun the process of applying for operating licenses in the city.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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