China’s central bank highlights Hong Kong’s crypto licensing push amid global regulatory shifts

In its newest report on China’s monetary stability, the Individuals’s Financial institution of China highlighted the progress Hong Kong has made in implementing crypto licensing, regardless of widespread regulatory adjustments each internationally and in mainland China.

NowHong Kong stays one of many extra crypto-friendly cities, although 51 international locations have already banned it cryptocurrencies.

Hong Kong Strengthens Crypto Laws Regardless of Restrictions

Based on the Individuals’s Financial institution of China, Hong Kong has made important progress in its regulatory and licensing procedures. This progress comes regardless of mainland China’s continued restrictions on crypto buying and selling and up to date regulatory adjustments to the worldwide framework for crypto belongings launched by the Monetary Stability Board.

In his annual China Monetary Stability Reportthe financial institution highlighted the function of Hong Kong’s Securities and Futures Fee (SFC) in regulating and licensing. Based on the financial institution’s report, the fee has digital belongings in two classes for supervision: securitized monetary belongings and non-securitized monetary belongings, whereas imposing a novel “twin licensing” system for the alternate of digital belongings.

Main monetary establishments, together with HSBC and Normal Chartered Financial institution, are additionally mandated to include digital asset platforms into their routine buyer monitoring processes, and crypto asset companies should apply for licenses from the fee.

To date, the Securities and Futures Fee has licensed 4 new crypto exchanges in December: Accumulus GBA Know-how (Hong Kong), DFX Labs, Hong Kong Digital Asset EX and Thousand Whales Know-how (BVI).

Eric Yip, government director of intermediaries on the SFC, even famous:

We have now been proactively working with senior administration and remaining auditors of VATPs, which helps us ship on our anticipated regulatory requirements and speed up our VATP licensing course of. We try to strike a stability between defending traders’ pursuits and facilitating the continued growth of Hong Kong’s digital asset ecosystem.

– Eric Yip

Some crypto establishments in Hong Kong disapprove of the regulatory necessities

The Monetary Stability Board has established a global regulatory framework for crypto belongings, which units out high-level pointers for the supervision of crypto belongings.

Hong Kong has strived to comply with this framework; Nonetheless, some crypto establishments are resisting the SFC’s regulatory necessities. The 4 permits granted in December have been simply one in every of almost thirty purposes this yr.

Of the almost thirty corporations which have utilized for licenses, solely a dozen are nonetheless ready for his or her licenses from the fee, as a number of main platforms, together with OKX and HTX have withdrawn their purposes resulting from strict authorized necessities.

A step-by-step system to launch your Web3 profession and land high-paying crypto jobs in 90 days.