- Hong Kong to permit licensed crypto exchanges entry to international buying and selling liquidity.
- SFC and HKMA promote new cryptocurrency vendor and stablecoin licensing framework.
- Licensed exchanges can now listing tokens and not using a 12-month monitor file rule.
The Hong Kong Securities and Futures Fee (SFC) plans to ease restrictions on licensed crypto buying and selling platforms, permitting them to attach native merchants with international order books. The regulator’s chief government, Julia Leung, introduced the modifications on Monday throughout Hong Kong FinTech Week, including {that a} formal round detailing the brand new guidelines could be revealed later that day.
As reported by Bloomberg, the brand new coverage marks a departure from the present “encirclement” system that restricts commerce inside Hong Kong. Below the subsequent framework, licensed exchanges can be allowed to attach with international liquidity, bringing digital asset buying and selling guidelines nearer to these governing conventional monetary merchandise.
Reworking your digital asset technique
This regulatory replace is a part of Hong Kong’s ongoing three-year effort to ascertain itself as a number one hub for digital property. Since introducing the digital forex licensing system, the town has allowed exchange-traded merchandise that monitor Bitcoin and Ether and developed the administration of digital asset funds.
Regardless of these measures, general market exercise stays restricted in comparison with areas resembling the USA, the place authorities have turn into extra tolerant of the trade.
Leung famous that the Fee is taking a cautious method and plans to ease restrictions on international liquidity entry as soon as it’s glad that investor safety measures are ample.
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New guidelines for dealer and stablecoin licenses
Leong added that the SFC is finalizing pointers for licensing crypto sellers and custodians. In the meantime, the Hong Kong Financial Authority (HKMA), the town’s de facto central financial institution, plans to subject its first licenses to stablecoin issuers subsequent yr.
As a doable subsequent step, the SFC can also be contemplating whether or not to permit domestically licensed crypto brokers entry to worldwide liquidity swimming pools. The modifications may permit main corporations resembling Binance and Coinbase to function in Hong Kong by way of dealer licenses reasonably than full trade licenses, which require an extended approval course of.
Expanded token listing choices
In response to the SFC’s up to date round, licensed exchanges will be capable of listing new tokens and HKMA-approved stablecoins for skilled traders with out adhering to earlier 12-month issuance and liquidity efficiency necessities.
In response to the regulator’s public register, 11 crypto exchanges at present maintain full SFC licenses and 49 brokers are approved to supply crypto asset buying and selling companies underneath omnibus account agreements.
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