- Hong Kong plans to release guidelines on virtual asset exchange licensing in May.
- Afterward, investors can trade prominent tokens such as Bitcoin and Ethereum.
- Previously, the HK government allocated $50 million to expedite Web3 development
In an event on Thursday, the Hong Kong Securities and Futures Commission (SFC)’s CEO, Julia Leung, said the regulator is set to release guidelines on the licensing regime for virtual asset exchanges next month.
This update was captured in a Bloomberg report where Leung said the move follows a consultation process by the SFC that garnered over 150 responses from the public regarding the regulatory framework that will apply to crypto exchanges.
The new licensing regime for crypto platforms, which is set to be implemented by June 1, will allow retail investors to trade prominent tokens such as Bitcoin (BTC) and Ethereum (ETH). According to the SFC CEO, the regulator aims to develop a fair and effective regulatory framework that will protect investors and promote the development of the crypto industry in Hong Kong.
Additionally, the guidelines are expected to bring more clarity to the crypto industry in Hong Kong and pave the way for more businesses to enter the market while ensuring that virtual asset managers are adequately regulated.
In a February budget statement, the Hong Kong government expressed strong interest in the third-generation Internet industry, Web3, aiming to seize the opportunity to spearhead innovation and development. Consequently, the government allocated $50 million to accelerate the growth of the Web3 ecosystem in the 2023/2024 fiscal year by organizing major international seminars.
Early this month, Changpeng Zhao, the CEO of Binance, said that Hong Kong banks have started showing support for cryptocurrencies. He expressed that their support for crypto will channel more funds to the crypto market, particularly favoring stablecoins.