Hong Kong’s
Securities and Futures Fee (SFC) introduced the launch of public
session on Monday relating to regulating buying and selling platforms for cryptocurrencies and
digital property. events can submit their feedback till 31 March
2023.
Hong Kong Opens Crypto
Regulation Session Interval
Beginning
from 1 June 2023, any centralized digital asset buying and selling platform that conducts enterprise
in Hong Kong or targets Hong Kong traders should get hold of a license from the SFC
underneath a brand new licensing system. The SFC’s proposed regulatory requirements for
digital asset buying and selling platforms are modeled after the present Securities and
Futures Ordinance rules and are just like these for licensed securities
brokers and automatic buying and selling venues. Moreover, the SFC has prompt
revisions to among the current necessities as a part of this initiative.
The primary info
suggesting that Hong Kong desires to legalize crypto buying and selling and broaden its
standing as a outstanding monetary hub to a digital property heart emerged in
October 2022. Though cryptocurrency buying and selling is banned in China, Hong Kong is
making the most of its impartial standing to permit brokers and platforms to
apply for native licenses.
Throughout the
session interval, SFC particularly requests enter on whether or not licensed
platform operators ought to serve retail merchants and what further measures
must be met to guard particular person traders.
“As
has been our philosophy since 2018, our proposed necessities for digital asset
buying and selling platforms embody sturdy measures to guard traders, following the ‘identical
enterprise, identical dangers, identical guidelines’ precept,” Julia Leung, the Chief
Government Officer at SFC, mentioned.
Operators
of cryptocurrency exchanges and platforms wishing to acquire authorization
ought to begin reviewing their management methods to organize for a clean
transition. In distinction, in line with the SFC, those that don’t plan to acquire
a license ought to start shutting down their Hong Kong operations in an orderly
method.
“In
mild of the latest turmoil and the collapse of some main crypto buying and selling
platforms world wide, there’s clear consensus amongst regulators globally
for regulation within the digital asset area to make sure traders are adequately
protected and key dangers are successfully managed,” Leung added.
Watch the latest FMLS22 panel on foreign exchange and crypto developments in 2023.
Interactive Brokers
Launches Crypto Companies in Hong Kong
Only a week
earlier than the latest SFC announcement, one of many main US digital buying and selling
platforms, Interactive Brokers, determined to develop its crypto providing to the
Asian markets and launched new digital assets trading services in Hong Kong.
Though the
providing is at the moment restricted to solely two property: Bitcoin and Ethereum, Interactive
Brokers didn’t rule out the potential for broadening the variety of provided
tokens within the foreseeable future.
For now,
solely skilled merchants will have the ability to commerce cryptos with Interactive
Brokers in Hong Kong, however the potential change of native rules, that are the
subject of the most recent public session, might open up the platform to a big
variety of retail clients.
“Investor
demand for digital property continues to develop in Hong Kong and world wide,
and we’re happy to introduce cryptocurrency to deal with the buying and selling aims
of purchasers on this vital market,” mentioned Interactive Brokers’ Head of
APAC, David Friedland.
After Crypto ETFs, It Is a Time for Crypto Tokens
Again in
October 2022, one of many 4 Asian Tigers was conducting similar consultation centered on permitting retail merchants entry to crypto exchange-traded funds
(ETFs). These kinds of devices are nonetheless ready for regulatory approval in
the US, however are already obtainable in Europe.
Solely two
months after the publication of the session paper, CSOP Asset Administration,
an funding advisor based mostly in Hong Kong, launched the first crypto ETFs on the
Hong Kong Stock Exchange (HKEX). CSOP Bitcoin Futures ETF and CSOP Ether Futures
ETF observe the standardized, cash-settled Bitcoin futures contracts and Ether
futures contracts traded on the Chicago Mercantile Change, respectively.
“They
present traders with publicity to the digital asset area for the primary time
in Asia and mirror each our ongoing dedication to, and the market’s urge for food
for, the digital economic system. We look ahead to welcoming extra themed ETFs and
extra digital asset merchandise to our markets within the months forward,” Wilfred Yiu,
the Chief Working Officer and Co-Head of Markets at HKEX, commented.
Hong Kong’s
Securities and Futures Fee (SFC) introduced the launch of public
session on Monday relating to regulating buying and selling platforms for cryptocurrencies and
digital property. events can submit their feedback till 31 March
2023.
Hong Kong Opens Crypto
Regulation Session Interval
Beginning
from 1 June 2023, any centralized digital asset buying and selling platform that conducts enterprise
in Hong Kong or targets Hong Kong traders should get hold of a license from the SFC
underneath a brand new licensing system. The SFC’s proposed regulatory requirements for
digital asset buying and selling platforms are modeled after the present Securities and
Futures Ordinance rules and are just like these for licensed securities
brokers and automatic buying and selling venues. Moreover, the SFC has prompt
revisions to among the current necessities as a part of this initiative.
The primary info
suggesting that Hong Kong desires to legalize crypto buying and selling and broaden its
standing as a outstanding monetary hub to a digital property heart emerged in
October 2022. Though cryptocurrency buying and selling is banned in China, Hong Kong is
making the most of its impartial standing to permit brokers and platforms to
apply for native licenses.
Throughout the
session interval, SFC particularly requests enter on whether or not licensed
platform operators ought to serve retail merchants and what further measures
must be met to guard particular person traders.
“As
has been our philosophy since 2018, our proposed necessities for digital asset
buying and selling platforms embody sturdy measures to guard traders, following the ‘identical
enterprise, identical dangers, identical guidelines’ precept,” Julia Leung, the Chief
Government Officer at SFC, mentioned.
Operators
of cryptocurrency exchanges and platforms wishing to acquire authorization
ought to begin reviewing their management methods to organize for a clean
transition. In distinction, in line with the SFC, those that don’t plan to acquire
a license ought to start shutting down their Hong Kong operations in an orderly
method.
“In
mild of the latest turmoil and the collapse of some main crypto buying and selling
platforms world wide, there’s clear consensus amongst regulators globally
for regulation within the digital asset area to make sure traders are adequately
protected and key dangers are successfully managed,” Leung added.
Watch the latest FMLS22 panel on foreign exchange and crypto developments in 2023.
Interactive Brokers
Launches Crypto Companies in Hong Kong
Only a week
earlier than the latest SFC announcement, one of many main US digital buying and selling
platforms, Interactive Brokers, determined to develop its crypto providing to the
Asian markets and launched new digital assets trading services in Hong Kong.
Though the
providing is at the moment restricted to solely two property: Bitcoin and Ethereum, Interactive
Brokers didn’t rule out the potential for broadening the variety of provided
tokens within the foreseeable future.
For now,
solely skilled merchants will have the ability to commerce cryptos with Interactive
Brokers in Hong Kong, however the potential change of native rules, that are the
subject of the most recent public session, might open up the platform to a big
variety of retail clients.
“Investor
demand for digital property continues to develop in Hong Kong and world wide,
and we’re happy to introduce cryptocurrency to deal with the buying and selling aims
of purchasers on this vital market,” mentioned Interactive Brokers’ Head of
APAC, David Friedland.
After Crypto ETFs, It Is a Time for Crypto Tokens
Again in
October 2022, one of many 4 Asian Tigers was conducting similar consultation centered on permitting retail merchants entry to crypto exchange-traded funds
(ETFs). These kinds of devices are nonetheless ready for regulatory approval in
the US, however are already obtainable in Europe.
Solely two
months after the publication of the session paper, CSOP Asset Administration,
an funding advisor based mostly in Hong Kong, launched the first crypto ETFs on the
Hong Kong Stock Exchange (HKEX). CSOP Bitcoin Futures ETF and CSOP Ether Futures
ETF observe the standardized, cash-settled Bitcoin futures contracts and Ether
futures contracts traded on the Chicago Mercantile Change, respectively.
“They
present traders with publicity to the digital asset area for the primary time
in Asia and mirror each our ongoing dedication to, and the market’s urge for food
for, the digital economic system. We look ahead to welcoming extra themed ETFs and
extra digital asset merchandise to our markets within the months forward,” Wilfred Yiu,
the Chief Working Officer and Co-Head of Markets at HKEX, commented.
