- These are based on suggestions from market participants
- The authorities have received 150 appeals on the issue
The Hong Kong Legislative Council will restart the crypto-trading market starting June 1. They have adopted a new licensing system (VASP) for virtual asset providers.
Under the new strategy, virtual asset exchanges will be subject to the same AML and terrorist financing requirements as traditional financial institutions.
In order to operate in the local market, companies must obtain a license from the regulator.
But while preparations are underway, the Hong Kong Securities and Futures Commission (SFC) has announced a new document.
It will come out in May and give more information about the development of the cryptocurrency structure of the city. SFC Executive Director Julia Leung made the announcement.
Before doing so, the regulator asked business participants to comment on regulatory issues.
According to the official, they have already received more than 150 such responses. They are taken into account in the development of a new guidance on the crypto-licensing regime.
In addition to crypto-trading, Hong Kong plans to develop the WEB3 industry.
This was announced in early April by the region’s financial secretary, Paul Chan. According to the official, the city needs to promote Web3 despite market fluctuations.
Hong Kong is now actively “poaching” crypto firms from mainland China. Experts predict that this region could become the world’s new crypto-hub.