Cryptocurrency firms moving to Hong Kong should expect tight regulations as part of the city-state’s new regulatory regime, Eddie Yue, the Chief Executive of the Hong Kong Monetary Authority (HKMA), said at the Bloomberg Wealth Asia Summit on Tuesday.
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Fast facts
- “Our regulations will be tight. We will let them create the ecosystem here and that actually brings a lot of excitement. But that doesn’t mean light-touch regulation,” said Yue.
- Yue noted that Hong Kong’s crypto regulations have been strict these past years, but they have been adjusted to a more “reasonable” level, which will bring more transparency to the crypto space.
- Hong Kong is preparing to launch its new licensing regime for virtual asset service providers on June 1, which will also allow retail investors to trade crypto.
- The regime aims to restore Hong Kong’s status as a global digital asset hub. Over 80 firms have expressed interest in applying for a license in the city, which has re-emerged as an attractive destination for some firms after the city in October its plan to become a global virtual asset center.
- Hong Kong’s crypto exchange licensing guidelines are set for release in May, according to Julia Leung, chief executive of the Securities and Futures Commission.
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