Following the collapse of FTX, local media indicates that the Hong Kong Securities and Regulatory Commission wants to develop new regulatory measures to implement under its new crypto-regulating framework.
According to reports, the Commission said that the FTX collapse had an impact on other virtual tokens as well as the whole crypto sector. The episode serves as a warning about the potentially disastrous consequences of utilizing a trading platform that is not properly regulated.
Exchanges in Hong Kong
In a crypto policy statement released on Oct. 31, the Hong Kong government said it intended to develop a “vibrant industry and ecosystem” for cryptocurrencies.
The new rules would enable cryptocurrency exchanges to seek formal operating licenses in the nation.
The announcement further stated that compliance with anti-money laundering, anti-terrorist funding, and investor protection legislation will be required of all exchanges.
Hong Kong and crypto
Hong Kong has openly taken a pro-crypto attitude and accepted it as a component of the current financial system. Eddie Yue, CEO of the Hong Kong Monetary Authority (HKMA), mentioned the technological benefits of cryptocurrencies on July 17 and said:
“The technology and the business innovation behind these developments are likely to be important for our future financial system,”
In June 2022, Hong Kong classed NFTs as financial assets as well, and on October 20, 2022, the Central Bank Digital Currency (CBDC) project mBridge saw great success.
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