Hong Kong aims to accelerate regulatory updates for virtual assets, addressing the demands of the rapidly evolving crypto sector.
Legislative Push for Hong Kong’s Crypto Regulation Reform
Hong Kong’s Legislative Council discussed proposals to expedite updates to crypto regulations on Dec. 11. Acting Secretary for Financial Services and the Treasury, Joseph Chan, acknowledged the sector’s potential for financial innovation while cautioning about its complexities and risks.
International Standards and Local Influence
Chan reaffirmed Hong Kong’s role in shaping global virtual asset (VA) regulations, emphasizing the city’s influence on international standards. However, he did not provide specifics on timelines or strategies for regulatory adjustments to maintain competitiveness.
Calls for Comprehensive Oversight
Some lawmakers suggested establishing a dedicated department or commissioner to oversee crypto policies, mirroring global trends. Such steps could ensure a more robust framework and enhance Hong Kong’s appeal as a crypto hub.
Crypto in Fiscal Reserves: A Pending Debate
Currently, cryptocurrencies are not included in Hong Kong’s fiscal reserves or the Exchange Fund’s investment strategy. Chan mentioned that while external managers may occasionally engage with crypto-assets, their involvement remains minimal.
The Path Ahead
As global crypto adoption surges, Hong Kong’s proactive stance on regulatory reform highlights its ambition to remain at the forefront of financial innovation while ensuring stability in the financial system.
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