Those who believe Hong Kong will one day be the promised land for cryptocurrencies should anticipate a clearer understanding of the region’s legal requirements as early as May.
According to a Bloomberg story that cited remarks made by the watchdog’s Chief Executive Officer Julia Leung at an undisclosed event, Hong Kong‘s Securities and Futures Commission wants to publish rules on its licensing regime for cryptocurrency exchanges in the upcoming month.
Leung added that the consultation process that informed the regulatory framework received more than 150 replies during the ceremony on Thursday.
On February 20, The Block revealed that Hong Kong’s government intended to relax its restriction on retail cryptocurrency trading. The SFC also sent operators notice that they had until June 24 to get licenses for all trading platforms, failing which they would have to stop operating. During that time, the SFC stated that it was attempting “to strike a better balance between investor protection and market development.”
Hong Kong’s cryptocurrency laws
The sector has lauded developments in Hong Kong toward a more pro-crypto environment, especially in light of reports that authorities there are toughening their stance in the wake of the failure of the Terra blockchain and the hedge fund Three Arrows Capital last year. Both organizations had a base of operations in Singapore, at least in part.