Today, Hong Kong Monetary Authority (HKMA) Chief Executive, Eddie Sue has clarified that Hong Kong is keen to welcome the fintech companies but they will also impose tight regulations. According to a report, Eddie Sue said that regulations “will be tight” on firms to ensure the safety and security of the people.
In the last few years, Hong Kong has initiated several provisions to attract investments and boost the country’s digital assets ecosystem. From providing monetary assistance to better infrastructural facilities it’s trying every possible way to become a global financial technology hub. Also, mainland China’s stricter policy further added boosters as many companies are shifting their focus towards Hong Kong. According to a recent interview, the Chief Executive of HKMA said that crypto firms are welcomed but they need to ensure they are complying with existing laws.
“We will let them create the ecosystem here and that brings a lot of excitement. But that doesn’t mean light-touch regulation”, says Eddie Sue in a recent interview. For those who are not aware, Hong Kong is set to implement a licensing regime for virtual-asset service providers (VASP) from 1 June. Also, it plans to let retailers trade major crypto products. The city is actively exploring new opportunities to become an international center in the virtual assets sector. Also, Sue clarified that the discussions between the Securities and Futures Commission and crypto companies will be made public.
Hong Kong regulatory bodies have been very strict against crypto. But now they have lowered their stand towards a “reasonable and sustainable” level. Also, they will provide a safe atmosphere for working and not let any FTX type take place in the country.
The new license regime will provide permissions to crypto firms to conduct their businesses in the city. After the implantation of the licensing regime for crypto, a new license process for stablecoins is expected to be rolled out next year. Hong Kong already has more than 800 fintech companies and in February 2023, the authorities decided to allot a fund worth $6.4 million (HK$50 million) to boost the fintech industry.
