Hong Kong to Let Licensed Crypto Exchanges Connect With Global Markets
Hong Kong is making ready to chill out its crypto buying and selling framework to assist native platforms faucet into world liquidity, the town’s prime monetary regulator introduced Monday at Hong Kong Fintech Week.
Key Takeaways:
- Hong Kong will enable licensed crypto exchanges to join with world order books, ending its present remoted buying and selling mannequin.
- The transfer is a part of a broader plan to appeal to crypto corporations and align digital asset guidelines with conventional monetary markets.
- Regulators are additionally making ready new licenses for sellers, custodians, and stablecoin issuers to strengthen the town’s digital finance ecosystem.
Julia Leung, Chief Executive Officer of the Securities and Futures Commission (SFC), stated licensed crypto exchanges will quickly be allowed to join their Hong Kong entities with world order books, ending the present system that confines trades throughout the metropolis.
The change, detailed in a regulatory round anticipated later as we speak, aligns the foundations for digital property with these governing conventional monetary merchandise, in accordance to a Monday report by Bloomberg.
Hong Kong Steps Up Crypto Push however Trails US in Trading Activity
The transfer marks a major step in Hong Kong’s ongoing bid to place itself as a regional digital asset hub.
Since 2022, the town has rolled out a complete licensing regime for exchanges, launched Bitcoin and Ether-linked exchange-traded merchandise, and permitted digital-asset funds.
Still, buying and selling exercise has lagged behind world leaders just like the United States, the place President Donald Trump’s administration has taken a friendlier stance towards the crypto trade.
“You can say we’re on the more durable facet,” Leung stated. “Once we’re certain that we’re in a position to defend buyers, we do chill out — as we did with world liquidity.”
The SFC can also be finalizing new frameworks for licensing crypto sellers and custodians, whereas the Hong Kong Monetary Authority plans to problem the primary stablecoin licenses subsequent yr.
In future phases, regulators could allow regionally licensed crypto brokers, not simply exchanges, to entry worldwide liquidity swimming pools.
If permitted, the rule might open doorways for corporations like Binance and Coinbase to enter Hong Kong extra simply by way of brokerage licenses as an alternative of full alternate purposes, which may take years to course of.
Currently, 11 crypto exchanges maintain full SFC licenses, whereas 49 brokers function below omnibus account preparations.
The SFC additionally introduced it can ease itemizing guidelines for brand new tokens and HKMA-approved stablecoins, eradicating the 12-month observe document requirement for skilled buyers.
Hong Kong Announces New Digital Asset Policy
Hong Kong has unveiled its second major policy statement on digital property, inserting stablecoin regulation and real-world asset (RWA) tokenization on the core of its technique to change into a world fintech hub.
The new “LEAP” framework focuses on authorized readability, ecosystem development, real-world adoption, and expertise growth, with a stablecoin licensing regime set to launch on August 1.
The authorities additionally plans to regulate tokenized authorities bonds and ETFs, paving the way in which for secondary market buying and selling of those merchandise on licensed digital asset platforms.
It goals to increase tokenization efforts into sectors like metals and renewable power, highlighting use circumstances akin to gold and photo voltaic panels.
As reported, professionals working within the crypto and hedge fund sectors are playing a key role in supporting Hong Kong’s residential rental market, which continues to battle due to weak conventional demand sources.
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