Hong Kong Crypto Regulations to Get Tougher, Says Executive

"Hong Kong Monetary Authority CEO Eddie Yue Talks About Upcoming Virtual Assets Regulation and Innovative Ecosystem Development"

The CEO of the Hong Kong Monetary Authority, Eddie Yue, has revealed in a recent interview with Bloomberg that the upcoming virtual assets regulation in Hong Kong will take a different dimension from what was previously obtainable. According to Yue, the new regulatory regime is aimed at developing a healthy and sustainable crypto ecosystem in the country, and not to hunt down crypto businesses. He also noted that the country’s guardrails used to be very high, forbidding many crypto activities, but that is no longer the case.

Yue stated that the regulator would let the industry develop and innovate, and create an ecosystem that brings a lot of excitement. However, he also made it clear that this does not mean that Hong Kong will adopt a ‘light touch regulation.’ He emphasized that any crypto company that feels the country’s regulation is too tight should take its business elsewhere.

Yue argued that in some countries, there are no barriers to entry, which, in his opinion, led to the collapse of FTX. He highlighted that the essence of the regulatory regime is to develop a healthy and sustainable crypto ecosystem in Hong Kong.

In April, the Hong Kong Securities and Futures Commission (SFC)’s CEO, Julia Leung, revealed that the country would release guidelines on the licensing regime for virtual asset exchanges this month. The licensing comes following a public consultation process that received over 150 responses regarding the regulatory framework that will apply to crypto exchanges.

Leung noted that retail investors in Hong Kong would be able to trade significant cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), from June 1, 2023, under a new licensing regime aimed at protecting investors and fostering crypto industry growth.

The new regulatory regime in Hong Kong is expected to provide a more structured framework for the crypto industry in the country. It will also help to protect investors’ interests and foster the growth of the crypto industry. With the new guidelines, Hong Kong is set to become a significant player in the global crypto industry.

In conclusion, Hong Kong is not adopting a ‘light touch regulation’ on crypto, as the CEO of the Hong Kong Monetary Authority, Eddie Yue, has made it clear that the regulator would let the industry develop and innovate, but would also ensure that the regulatory regime is healthy and sustainable. The licensing of virtual asset exchanges in the country is expected to provide a more structured framework for the crypto industry, protect investors’ interests, and foster the growth of the industry. Retail investors in Hong Kong will be able to trade significant cryptocurrencies from June 1, 2023, under a new licensing regime aimed at protecting investors and fostering crypto industry growth.

Martin Reid

Martin Reid

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