- Hong Kong to license more crypto exchanges by 2024, enhancing regulatory compliance.
- New AI policy in finance promotes innovation while addressing regulatory challenges.
- Proposed tax breaks on virtual assets aim to boost Hong Kong’s digital investment appeal.
Hong Kong plans to license digital asset exchanges by the end of 2024 after a five-month review of crypto platforms. Eric Yip, Executive Director for Intermediaries at the Securities and Futures Commission (SFC), said this during Hong Kong’s Fintech Week event.
According to Yip, digital asset exchanges will transition from initial permits to fully licensed status once they meet the SFC’s regulatory standards. These platforms addressed the SFC’s feedback, allocated resources to regulatory concerns, and adopted a sustainable, compliant operational model.
In line with these updates, The SFC will form a panel by early 2025, composed of representatives from licensed exchanges, to promote ongoing communication between the regulator and digital asset platforms.
Hong Kong Expands Crypto Regulation
Hong Kong also plans to regulate over-the-counter (OTC) trading desks and custodial services for digital assets.
Read also :Hong Kong’s Crypto Hub Plans Hit by Regulatory Challenges
In an additional step to support the sector, Hong Kong Exchanges and Clearing Ltd. announced the forthcoming launch of a Virtual Asset Index Series. This index will introduce new Bitcoin and Ether pricing benchmarks tailored to Asia-Pacific time zones.
AI Policy in Finance and Proposed Tax Breaks for Virtual Assets
Alongside its crypto licensing initiatives, Hong Kong unveiled its first AI policy guidelines for the financial sector, which provide a framework for regulatory agencies to shape AI’s growing role in finance.
Christopher Hui Ching-yu, Secretary for Financial Services and the Treasury, introduced a dual-track approach aimed at promoting AI adoption while addressing the related regulatory challenges, considering both AI’s potential benefits and risks.
Hui also announced plans to expand tax benefits for virtual asset ownership. He explained this aims to establish Hong Kong as a leader in the digital asset market and boost virtual asset investment.
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