Regulators have warned cryptocurrency businesses not to count on special treatment.
The Hong Kong Securities and Futures Commission is working on new guidelines.
When it comes to establishing guidelines for Hong Kong’s cryptocurrency sector, the government has been quite transparent. According to the most recent data, the Securities and Futures Commission in Hong Kong will shortly publish regulations for the cryptocurrency sector.
Regulators in Hong Kong have warned cryptocurrency businesses not to count on special treatment as the city prepares to become Asia’s cryptocurrency capital. On Tuesday, May 9, Eddie Yue, Chief Executive of the Hong Kong Monetary Authority spoke during the Bloomberg Wealth Asia Summit.
Eddie stated:
“Our regulation will be tight. We will let them create the ecosystem here and that actually brings a lot of excitement. But that doesn’t mean light-touch regulation.”
New Framework Underway
Starting on June 1st, investors in Hong Kong will be able to trade major cryptocurrencies like Bitcoin and Ethereum thanks to a new licensing scheme for crypto service providers. For the last eight months, Hong Kong has been actively promoting cryptocurrency acceptance and reestablishing the region’s status as a global financial center. Yue has issued a stern warning that Hong Kong would not tolerate any FTX-style event.
The Hong Kong Securities and Futures Commission is working on new guidelines for banks to follow when dealing with cryptocurrency customers. Yue promised that they will soon share their thoughts on the extent to which individual investors may take part.
After a severe crypto winter and the high-profile collapse of crypto exchange FTX in 2022, regulators across the globe have been debating how to approach the cryptocurrency sector. It’s no secret that US authorities, especially the SEC have started cracking down on cryptocurrency businesses in recent weeks.