Hong Kong Bets on Crypto As Others Crackdowns Overseas!

Credits: Al Jazeera / Reuters.

Hong Kong, – Cryptocurrencies have had a rough ride in recently, with prices spiralling through periods of boom and bust as the industry is threatened by bad actors and uncertain regulatory regimes.

But even as these troubles have led some jurisdictions to crack down on the sector, Hong Kong is embracing virtual assets, and is betting that a new regulatory framework introduced in July this year will help the city state avoid the stumbles seen elsewhere in the world.

Hong Kong officials have acknowledged that cryptocurrencies are here to stay and that the semi-autonomous territory must welcome the industry to keep its status as a global financial hub, which has had a tough time during the COVID years.

Earlier this month, authorities issued licences granting two cryptocurrency exchanges approval to engage in retail trading of digital assets for the first time.

HashKey Exchange and OSL recently secured regulatory approval after Hong Kong’s Securities and Futures Commission (SFC) opened applications for licensing of exchanges for retail investing in June.

“We are not aiming to be a crypto trading hub but we recognise crypto trading as an important part of the virtual asset ecosystem,” says Julia Leung, SFC Chief Executive Officer, said in a speech in June.

Leung emphasised that a well-balanced regulatory system was crucial to building trust in the industry.

Well Done Hong Kong!