Leung Fung Yee, CEO of the Securities and Futures Fee of Hong Kong (SFC), believes that together with digital asset service suppliers within the regulatory system is critical for embracing crypto innovation and constructing market belief.
Throughout an govt dinner in Bangkok, organized by the Hong Kong Financial and Commerce Workplace, the Key Enterprise Workplace, and InvestHK, Leung Fung Yee spoke in regards to the challenges the crypto market has confronted up to now yr.
She emphasised that a number of crypto-related companies have defaulted or gone bankrupt, which poses dangers to your complete business.
Leung emphasised the significance of regulating digital asset service suppliers to handle considerations and restore investor confidence within the crypto market. In her view, this can assist embrace innovation and construct market belief.
Hong Kong not aspiring to be crypto buying and selling hub
The SFC CEO famous that Hong Kong’s new licensing regime for digital asset service suppliers, which just lately got here into impact, affords complete protection of all public interactions with crypto property. Its main goal is to safeguard traders whereas contemplating the dangers confronted by monetary establishments.
Nevertheless, whereas recognizing the significance of crypto buying and selling inside the digital asset ecosystem, Leung clarified that Hong Kong doesn’t aspire to develop into a crypto buying and selling hub.
She expressed Hong Kong’s openness to related applied sciences utilized to monetary providers, reminiscent of bond tokenization and funding funds.
Moreover, she acknowledged that Hong Kong nonetheless has progress to make in establishing a strong crypto ecosystem, expressing confidence that the convergence of the digital asset fintech group within the metropolis will speed up its growth.
For the reason that bankruptcy of FTX, jurisdictions that beforehand welcomed crypto property have tightened laws, with a few of them adopting enforcement as a regulatory strategy.
Leung contrasted that with Hong Kong’s oversight of digital property, which she said is characterised by transparency, consistency, and predictability.
She additional emphasised that the introduction of the brand new licensing regime exemplifies the “one nation, two techniques” precept, as mainland China continues to ban cryptocurrency buying and selling.
