In the Web3 world, Hong Kong has returned to the center of attention of the Asian crypto world after declining traffic in Singapore.
At the recent “Hong Kong FinTech Week” (related topic), the HKSAR Government officially issued the Policy Declaration on the Development of Virtual Assets in Hong Kong, setting out the Government’s policy stance and guidelines for the development of a vibrant virtual asset industry and ecosystem in Hong Kong.
The government is open to reviewing the title of future tokenized assets and the legality of smart contracts to facilitate their development in Hong Kong.
At the regulatory level, the compliance of Hong Kong’s crypto industry is already on the line. The opening up of policies has undoubtedly injected confidence into the market. This is not the first “overture” of Hong Kong’s crypto industry, as Hong Kong has formulated a relatively sound regulatory framework and policies long before the release of this Declaration.
Hong Kong’s existing crypto regulatory policies at a glance
As early as 2017, the Hong Kong Securities and Futures Commission issued the Circular on the Publication of the SFC Regulatory Sandbox. The SFC has made it clear for many years that innovation in the “fintech” space can take a regulatory sandbox stance.
“Firms that are genuinely and conscientiously committed to using fintech for regulated activities may conduct regulated activities in a restricted regulatory environment, i.e. the SFC Regulatory Sandbox. To minimise the risks to investors, the SFC may impose licensing conditions on eligible firms and provide stricter supervision and supervision of eligible firms when they operate in the sandbox. ”
This regulatory rule is broader in scope and applies to the larger fintech sector. When it comes to crypto assets, there are some clearer regulatory standards.
The CSRC has set different regulatory requirements for entities engaged in different businesses. The pre-existing regulatory requirements are separately for virtual asset fund management companies,…