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Hong Kong To Review Virtual Asset Activities

Hong Kong, a global financial hub, is set to regulate the virtual asset (VA) industry by conducting a review on virtual assets requirements and potential risks.

The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) have announced a review of existing regulations for Virtual Asset activities. This move signifies Hong Kong’s intention to encourage innovation in the space while ensuring investor protection and mitigating financial risks.

SFC to Assess Digital Asset Sector for Innovation and Investor Protection

On July 3, 2024, the Secretary for Financial Services and the Treasury, Mr Hui Ching-yu, published the reviewed approach to the regulations guiding the financial industry, addressing questions posed by Hon Li Wei-hong.

According to the current regulation, the New Capital Investor Entry Scheme, which has attracted applicants, may undergo changes to allow asset ownership through wholly-owned companies.

Additionally, regulations on virtual assets will prioritize investor protection while providing flexibility for specific products and high-end investors. Furthermore, the ongoing communication with industry stakeholders and regulatory bodies ensures these measures stay effective and adaptable amid changes in the financial industry. The HKMA and the SFC will continue to monitor market developments and promptly review the requirements for virtual asset-related activities.

Hong Kong Warns Virtual Assets Investors

The Securities and Futures Commission (SFC) recently sent a warning to virtual assets and crypto investors about the challenges witnessed in trading spot ETFs listed in the region. The warning is expected to alert investors about the risk of trading these investment products.

Meanwhile, Lu Tingkuang, the co-founder and chief strategy officer of HKBitEX, revealed on June 30 that the Hong Kong crypto-asset license allows holders to provide trading services for crypto and security tokens. According to Lu, licenses in other countries only cover one asset category, citing Coinbase in the U.S., whose license permits only the trading of crypto assets.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

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