The Hong Kong Securities and Regulatory Fee plans to draft new regulatory provisions to implement beneath its new crypto regulation system within the wake of FTX’s collapse, based on native media experiences.
The Fee reportedly argued that the FTX fallout had affected different digital tokens and the whole crypto business. The incident demonstrates the doable catastrophic results of utilizing a buying and selling platform that isn’t totally regulated.
In keeping with the Fee, the query is whether or not a regulatory framework can assure monetary security for traders.
The Fee additionally talked about launching a public session to watch the business and replace laws accordingly.
Exchanges in Hong Kong
On Oct. 31, the federal government of Hong Kong issued a crypto coverage assertion and revealed that it was planning to create a “vibrant sector and ecosystem” for crypto.
The brand new laws would permit crypto exchanges to use for licenses to function formally within the nation.
The assertion added that it could be obligatory for all exchanges to adjust to anti-money laundering, counter-terrorist financing, and investor safety legal guidelines.
Hong Kong and crypto
Hong Kong has publicly adopted a constructive stance towards crypto and accepts it as part of the prevailing monetary system. On July 17, Hong Kong Financial Authority (HKMA) CEO, Eddie Yue, referred to the technological benefits of crypto and stated:
“The expertise and the bushiness innovation behind these developments are prone to be necessary for our future monetary system,”
Hong Kong additionally labeled NFTs as monetary property in June 2022 and achieved vital success from its Central Financial institution Digital Foreign money (CBDC) undertaking mBridge on Oct. 2022.