After Hong Kong decided to provide the necessary infrastructure to crypto companies in February, the country decided to hold meetings with these firms to develop itself as an international financial hub.
In February 2023, Hong Kong proposed a discussion in front of the public to discuss necessary aspects. The conclusion in the form of a comprehensive policy will take effect from 1 June. After intense discussion over many years Hong Kong seems to reach an edge to frame a comprehensive crypto regulation for crypto banks.
Hong Kong is already the home of more than 800 fintech companies. Additionally, in February it allocated $6.4 million (HK$50 million) to boost the Web3-related infrastructure. Opening the licensing process from 1 June will encourage investors to operate in the city without any hesitation.
According to reports, Hong Kong is set to hold a round table meeting on 28 April at Hong Kong Monetary Authority (HKMA). The meeting will be jointly held by HKMA and the Securities and Futures Commission (SFC) consisting of several stakeholders of crypto firms, and players who already have experience in crypto trading for many years. Officials of the Hong Kong Monetary Authority and SFC denied providing any information but added that they are in contact with stakeholders.
According to the secretary of Financial Services and Treasury, Christopher Hui, over 80 foreign crypto companies have shown their interest in opening their branches in Hong Kong. The collapse of two crypto-friendly banks, the Silicon Valley and the Signature bank in the United States has increased difficulty in finding banking services. However, after mainland China banned crypto transactions in September 2022, the banks which were providing crypto-related services in mainland China are now heading toward Hong Kong. The step to perform their business in Hong Kong will help both these banks and Hong Kong as the city is looking at itself as a global financial hub.
Amidst the chaos regarding the management of cryptocurrency worldwide where technologically advanced countries like the United States are struggling to find a comprehensive crypto policy, the proactive decision to hold a meeting is a commendable step.
It was earlier reported that some foreign and mainland Chinese entities are already keen to launch their business after the implementation of new crypto rules from 1 June. By providing leniency in crypto transactions Hong Kong is trying to distinguish itself from mainland China’s decision to outright ban crypto transactions.