Hong Kong’s Securities Regulatory Commission, to Issue Crypto Guideline
The Securities Regulatory Commission of Hong Kong is planning to provide licensing requirements for cryptocurrency exchanges soon. The move is anticipated to provide greater clarity and regulation for dealers, and investors operating in the rapidly expanding market for digital currencies.
The Hong Kong Securities Regulatory Commission is reportedly going to provide guidelines for cryptocurrency exchanges sometime in May, according to persons who are acquainted with the situation. The recommendations will make obtaining a license from the commission mandatory for any cryptocurrency exchange that wishes to conduct business in Hong Kong.
To evaluate the benefits of digital assets and their uses in financial markets, the regulator is also reported to be carrying out some pilot projects. These initiatives include the tokenization of green bonds and the establishment of Hong Kong’s central bank digital currency (CBDC).
Despite the efforts made by Hong Kong to adopt a more permissive policy towards cryptocurrencies, worries still linger about the influence it may have on the industry’s relationship with mainland China, where trading in cryptocurrencies and the mining of Bitcoin were first prohibited in 2017.
It is anticipated that the new license restrictions will help in preventing hacking and rug pulling, as well as other illicit activities, from taking place in the industry. They will also assist to market Hong Kong as a good hub for trading digital currency in Asia and the world at large, which will draw more investors to the city.
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