Julia Leung Fung-yee believes that the new system for licensing virtual asset service providers will protect investors, given the risks faced by financial institutions. Including such companies in the regulatory system was the only way to innovate and build market confidence after the collapse of the FTX exchange.
The SFC Chair noted that the regulation of cryptocurrencies in Hong Kong is a perfect example of the expression “one country, two systems.” We are talking about the fact that in mainland China, cryptocurrencies are completely banned from 2021. And Hong Kong has taken a different stance and continues to attract cryptocurrency companies.
The Hong Kong authorities prepared a bill to regulate cryptocurrencies in December 2022, less than a month after the collapse of the FTX exchange. The law obliges cryptocurrency companies to follow strict anti-money laundering requirements. Recently, retail traders in the region have been able to trade digital assets.
In May, it was reported that the authorities in the region launched a pilot program for the digital Hong Kong dollar.
Source: Bits
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