Hong Kong’s Crypto Licensing Regime Expected to Launch Next Month

Hong Kong’s highly-anticipated crypto licensing regime is predicted to launch subsequent month.

Vying to develop into a crypto hub, Hong Kong will launch pointers for crypto exchanges trying to launch there in Might, per Bloomberg, citing Hong Kong’s Securities and Futures Fee (SFC) CEO Julia Leung.

Talking Thursday at an occasion, Leung mentioned the regulatory framework for crypto exchanges obtained over 150 responses in the course of the public session course of.

The general public consultations launched final yr sought to find out the easiest way to grant retail buyers entry to cryptocurrencies, in addition to look at the potential for providing crypto exchange-traded funds (ETFs) within the territory.

The brand new guidelines are additionally anticipated to let retail buyers commerce main cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) on June 1.

Whereas crypto exchanges are at the moment permitted to function in Hong Kong, buyers with portfolios underneath HK$8 million, or roughly $1 million, are topic to sure restrictions underneath current laws.

The regulator can also be conducting a number of pilot initiatives to evaluate the benefits of digital property and their purposes in monetary markets, together with the tokenization of inexperienced bonds and the event of Hong Kong’s personal central financial institution digital forex (CBDC).

The SFC didn’t instantly reply to Decrypt’s request for remark.

Hong Kong seeks to develop into Asia’s main crypto hub

Regardless of Hong Kong’s efforts to undertake a extra relaxed strategy in direction of cryptocurrencies, questions stay over the impression it might have on the business’s relationship with mainland China, the place cryptocurrency buying and selling and Bitcoin mining had been first banned in 2017.

BitMEX founder and former CEO Arthur Hayes additionally chimed in on the matter final yr, stating that entry to Chinese language clients might be important to Hong Kong’s attraction to crypto corporations.

“Hong Kong’s place as a very powerful crypto hub started to tumble regularly at first, after which shortly with the imposition of its zero-COVID insurance policies. However now, it appears to be like like one thing curious is occurring,” he wrote, including that “it’s the strange rich Chinese language those who energy the Hong Kong financial system.”

Hong Kong’s authorities seem like assured that their efforts will repay, too.

“Hong Kong is well-positioned to be a number one hub for Web3 in Asia and past, and we connect nice significance to digital property and Web3,” Secretary for Monetary Providers and the Treasury Christopher Hui mentioned final month.

In keeping with Hui, Hong Kong had obtained curiosity from over 80 corporations searching for to determine a enterprise there. These included exchanges, blockchain infrastructure companies, safety corporations, wallets, and fee suppliers.

Nikkei Asia additionally reported final month that a number of Chinese language crypto corporations, together with securities corporations and banks which might be occupied with permitting purchasers to commerce Bitcoin and Ethereum on licensed exchanges, are eying Hong Kong.

Cryptocurrency alternate Bitget has in the meantime introduced the launch of a brand new buying and selling platform for its Hong Kong customers. In keeping with final week’s assertion, BitgetX Hong Kong intends to use for the license underneath the Hong Kong Digital Asset Service Supplier (VASP) regime.