• Hong Kong will introduce a brand new licensing system for digital asset suppliers.
• It goals to manage the cryptocurrency trade and supply complete safety for traders.
• Hong Kong’s laws embody the traditional “one nation, two methods” mannequin.

China Securities Regulatory Fee (CSRC) CEO Liang Fengyi introduced at an government dinner in Bangkok {that a} new licensing regime for digital asset service suppliers in Hong Kong will likely be carried out this month.

This regulatory framework comprehensively covers all elements of crypto property and goals to make sure investor safety whereas addressing the dangers confronted by monetary establishments.

Outstanding Chinese language report Colin Wu introduced this improvement to the cryptocurrency group.

In his speech, Liang Fengyi acknowledged the challenges confronted by the cryptocurrency market over the previous yr, together with the defaults and bankruptcies of a number of crypto-related corporations corresponding to FTX and Celsius.

Liang emphasised the significance of incorporating digital asset service suppliers into the regulatory system to rebuild belief and foster innovation. He famous that jurisdictions that beforehand embraced cryptocurrencies are starting to extend oversight by means of regulation enforcement and regulatory measures.

In distinction, Hong Kong’s method to digital asset regulation stays clear, constant and predictable.

Emphasizing the distinctive “one nation, two methods” framework, Liang harassed that Hong Kong’s new licensing system represents a dedication to the area’s regulatory trajectory. With cryptocurrency buying and selling nonetheless banned in mainland China, Hong Kong goals to strike a stability between introducing new know-how and guaranteeing a managed and safe atmosphere.

Liang clarified that Hong Kong doesn’t wish to turn into a cryptocurrency buying and selling heart, however acknowledges the significance of cryptocurrency buying and selling within the wider crypto ecosystem.

The brand new licensing system welcomes the tokenization of bonds and the applying of associated applied sciences to monetary providers corresponding to funding funds.

Liang additional acknowledged that Hong Kong remains to be within the early levels of building a digital asset ecosystem, however expressed confidence that the presence of a digital asset fintech group in Hong Kong will speed up its improvement.