Hong Kong authorities make way to establish a crypto-friendly jurisdiction
The Securities and Futures Commission of Hong Kong (SFC) plans to publish a guidance on issuing crypto licenses for digital-asset exchanges in May, according to Bloomberg citing the regulator’s Chief Executive Officer Julia Leung.
During the consultations on legal framework relating to crypto exchanges, the SFC processed and responded to over 150 inquiries.
Following the February proposal, all centralised platforms doing business in Hong Kong or dealing with local investors will have to secure an SFC license starting June 1.
The initiative practically lifts the ban on trading virtual assets for retail clients. The Commission underlined that it’s looking for the most balanced way to protect investors and advance market growth.
Earlier, the Financial Secretary Paul Chan stated that now is the “best time” to promote the development of Web3 in the country, despite cryptocurrency volatility.
In January, Chan also mentioned that Hong Kong is open towards crypto companies from around the globe. He noted that authorities had just completed work on licensing regime for the digital assets industry.