In a recent interview with Bloomberg, Eddie Yue, CEO of the Hong Kong (HK) Financial Authority, stated that the impending digital assets regulation would go beyond what was previously available. “We’ll let the trade develop and innovate; we’ll let them create the ecosystem right here, which brings a lot of pleasure,” Yue says, “but that doesn’t imply ‘gentle contact regulation.'”
The Hong Kong regulator stated that any cryptocurrency company that believes the country’s regulations are simply too stringent should relocate its operations elsewhere. Nonetheless, the Chief Government stressed that the regulatory regime’s goal is to create a healthy and sustainable crypto ecosystem rather than to seek out crypto enterprises.
Furthermore, Yue stated that in prior years, HK’s guardrails were quite strict, prohibiting numerous crypto activities; however, this is no longer true. He also claimed that in other countries, there are no entrance barriers, which he believes contributed to the demise of FTX. Julia Leung, CEO of the Hong Kong Securities and Futures Commission (SFC), announced in April that the country would provide guidelines on the licensing framework for digital asset exchanges this month.
According to Leung, the licensing follows a public session course that received over 150 answers relevant to the regulatory framework that can apply to cryptocurrency exchanges. Furthermore, the SFC CEO stated that retail traders in Hong Kong will be able to trade important cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), beginning June 1, 2023, under a brand new licensing regime aimed at protecting traders and supporting crypto trade development.
