Hong Kong: Cryptocurrency Regulation

Hong Kong: Cryptocurrency Regulation

A few weeks ago, the Hong Kong government announced that it was about to review its policy towards cryptocurrencies. What seemed to be a rumor that would have no follow-up has become a reality. Indeed, on October 31, 2022, Hong Kong proceeded to publish its general policy on digital assets.
The contents of Hong Kong’s statement on its general crypto policy
The Hong Kong government has shifted into high gear. In effect, Hong Kong had indicated a few weeks ago that it would lift many restrictions on crypto currencies on its territory.
For many observers and experts in the crypto market, this announcement from Hong Kong could have a limited impact because China, which is fiercely opposed to crypto currencies, was able to limit Hong Kong’s ambitions.
But on October 31, 2022, the Hong Kong government kept its promise. It has indeed published its general policy on crypto currencies.
A general policy that clearly displays its position and ambitions for the creation of a favorable and dynamic ecosystem with the aim of supporting the development of crypto-currencies in the city-state.
By taking this action, the Hong Kong government is restoring its image in the digital asset market. This decision can make Hong Kong, in the coming months, the hub of crypto currencies on the Asian continent if it continues its efforts in this direction.
And for good reason, the general policy includes a new licensing regime for cryptocurrency exchanges. This general policy also proposes a legal framework which will allow professional and individual investors to do crypto trading easier.
Another important point of this general policy, Hong Kong is showing a desire to open up to cryptocurrency projects and to get involved in them.
However, Hong Kong claims that its general policy on cryptocurrencies will be followed by strict regulation and which will be in line with that applied internationally.
What to remember about Hong Kong’s general policy on cryptocurrencies
The general policy of Hong Kong has taken into account several points. Among other topics, there is the vision of Hong Kong. In this regard, the Hong Kong government wants to be open and inclusive of the world of digital assets as well as innovators in this field.
Hong Kong also plans to work with financial regulators to promote a smooth and supportive ecosystem for crypto trading.
For this, the Hong Kong government has promised to strengthen the control of financial flows in cryptocurrency while taking into account international standards.
There is also the regulatory framework that was mentioned in the general Hong Kong policy. Indeed, Hong Kong claimed to have at its disposal a fairly solid database to pursue its policy of adoption, financial innovations and technological development.
Also, the Hong Kong government has confirmed that it is accelerating initiatives for the establishment of a new licensing regime for cryptocurrency exchanges.
This will not only make it possible for virtual currency exchanges, but also for investors to come to Hong Kong to expand their business more easily.
What should also be remembered about the general policy on Hong Kong cryptocurrencies; it is the public consultation that will be done. Indeed, Hong Kong, through the Securities and Futures Commission will conduct a public consultation.
Thanks to the results of this consultation, a legal framework will be put in place to allow investors to benefit from easier access to crypto currencies and a legal framework conducive to the development of the crypto market in Hong Kong.
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