Hong Kong Government Announces Policy On Virtual Assets

Hong Kong Government Announces Policy On Virtual Assets

• Hong Kong Government published a policy statement on the development of crypto.
• The government of Hong Kong focuses on being open and inclusive towards the global community of crypto investors.
• FTX CEO shares positive views on the statement over Twitter.

The Hong Kong government has published a policy statement on the development of virtual assets in the country. The statement reflects the Hong Kong government’s stance towards the growing virtual asset ecosystem in the country across four pointers.

The statement reads that as an international financial centre, Hong Kong wishes to be open and inclusive towards the community of investors engaging with the virtual asset sector across the globe. Moreover, the government has joined hands with financial regulators to provide an environment that caters to the sustainable and responsible development of the sector.

The policy further states,

We will put in place timely and necessary guardrails to mitigate actual and potential risks in line with international standards, so that VA innovations can thrive in Hong Kong in a sustainable manner.

When it comes to regulations, the government prioritizes consistency, predictability, and clarity to establish a comprehensive framework that promotes a strong foundation for further financial innovations and technology development of virtual assets globally.

The statement highlights that the government is prepared to engage with global VA exchanges while inviting new business opportunities to Hong Kong, through a new licensing regime for virtual assets service providers.

Moreover, the Hong Kong Securities and Futures Commission will host a public consultation to determine a suitable degree of access for VA provided to retail investors. Meanwhile, Hong Kong is open to potential Exchange Trade Funds on virtual assets in the market.

The Hong Kong government also anticipates future review of property rights for tokenized assets, as well as the legitimacy of smart contracts. The regulatory governance of stablecoins will be announced by the Hong Kong Monetary Authority on the basis of the consultation.

In addition, Hong Kong’s Financial Secratary Paul Chan shared:

The policy statement explains in detail our vision and approach, regulatory regimes, thoughts on investors’ exposures, and our pilot projects to embrace the technological benefits and financial innovations brought by VA.

FTX CEO, SBF tweeted the published statement calling it a “positive update from Hong Kong,” appreciating how the Hong Kong policymakers have engaged constructively with the customers in the virtual asset industry to map out the regulations.

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