HKMA Chairman Eddie Yue said at the Bloomberg Wealth Asia Summit that Hong Kong intends to become the cryptocurrency hub of Asia, so local regulators are ready to create and implement a regulatory framework to govern the industry.
The agency recently said it will publish guidelines for cryptocurrency companies as early as May. Yue admitted: Hong Kong has taken a very strict approach to cryptocurrencies in the past few years.
Now regulators will take a reasonable approach, the official promised, but cryptocompanies should not hope for leniency or additional benefits.
“Our oversight of cryptocurrencies will be tough. Of course, we will allow companies to create and develop the ecosystem, and this initiative is really interesting. But doesn’t mean a soft approach to regulation,” the HKMA chairman threatened.
On June 1, Hong Kong plans to introduce a new licensing regime for virtual asset service providers (VASPs) that will allow local users to trade cryptocurrencies.
Eddie Yue said that the Hong Kong Securities and Futures Commission (SFC) is already developing additional guidelines for banks to service crypto-asset clients.
Agencies plan to discuss rules for the crypto industry regarding retail investors. By 2024, Hong Kong regulators plan to work through a licensing regime for stabelcoin issuers.
Last year, the HKMA launched testing of the digital Hong Kong dollar (e-HKD) to improve and speed up payments.