Hong Kong Financial Secretary Paul Chan said the government has completed its cryptocurrency regulatory framework, which is set to take effect in June 2023.
Speech Speaking at the POW’ER Web3 summit on January 9, Chan said that the necessary legislative framework for issuing licenses to virtual asset providers has been finalized.
“We recently completed legislative work to license virtual asset service providers and the new measure will take effect in June.”
According to Chan, the government’s move to finalize the regulatory guideline will bring clarity to many startups looking to establish their headquarters in Hong Kong.
He added that the regulatory requirements for virtual asset providers will be similar to those that currently apply to traditional financial institutions. Specifically, exchanges will be required to detail how they plan to combat money laundering and enforce investor protection.
Secretary Chan said that Hong Kong will continue to support the development of the Web3 industry in the region as it aspires to become a regional hub for crypto-innovation.
Hong Kong goes pro-crypto
Despite the anti-crypto stance of the Chinese government, Hong Kong has taken steps to become a crypto innovation that promotes outliers. According to the former CEO of BitMEX Arthur Hayes, “Hong Kong wants to bring back cryptocurrencies.”
In early June 2022, Hong Kong classified NFTs as financial assets, indicating plans to regulate them as an investment scheme. The government too finished the pilot test of its Central Bank Digital Currency (CBDC) project.
In addition, the Securities Regulatory Commission recently passed the listing of two exchange-traded funds (ETFs) on the Hong Kong Stock Exchange.
Secretary Chan added that the government is working to tokenize its green bonds and implement a cross-border application for the central bank’s eHKD digital currency.
