As the year approaches, the regulatory environment for the Asian cryptocurrency industry has seen significant developments, including: growing momentum. Hong Kong, in particular, has been at the forefront of efforts to establish itself as a hub for cryptocurrency and Web3 innovation.
Below is a roundup of the major cryptocurrency developments in Asia this year.
Hong Kong — Web3 hub in the making
Hong Kong in June It has officially launched a cryptocurrency licensing regime for virtual asset trading platforms, allowing licensed exchanges to offer retail trading services. The regulator has granted the following licenses: hashish and OSL.
Hong Kong Securities and Futures Commission in October Updated guidelines for virtual asset-related activities Expanding investor reach for participation in cryptocurrency ETFs for intermediaries. The regulator also issued two circulars in November aimed at: Oversees the city’s digital asset tokenization activities. And in December, it was announced that applications for the spot cryptocurrency ETF had begun.
Christopher Hui, Hong Kong’s Minister of Financial Services and Finance, reaffirmed the government’s commitment to growing Web3 at Hong Kong Fintech Week in November. Despite Recent crackdown on JPEX cryptocurrency exchangeHui said Regulatory measures will not interfere with their decisions.
“We have been asked several times whether JPEX will affect our determination to grow the web3 market,” Hui said. “The answer is clearly no.”
“Hong Kong’s regulatory regime provides a competitive advantage for establishing and operating a compliant digital asset business,” Donald Day, chief operating officer of Hong Kong-based cryptocurrency platform VDX, told The Block. “I do it,” he said. “These jurisdictions have had to pivot 180 degrees and strengthen their regulatory frameworks, but Hong Kong’s framework has been stable and reliable and has now proven itself.”
Adrian Wang, CEO of Asia-based digital asset management company Metalpha, said cryptocurrency investors were surprised by “how quickly Hong Kong is catching up to Singapore’s balanced regulatory framework.”
“It is true that Singapore has taken the lead in designing and testing appropriate policies for digital assets. For example, DBS conducted bond trading on JP Morgan’s Onyx network as early as 2022,” Wang said. “However, since Hong Kong Fintech Week last year, the SFC has gradually rolled out the VASP licensing scheme to attract high-quality cryptocurrency companies to Hong Kong.”
Singapore beckons
While Hong Kong continues to demonstrate its cryptocurrency-friendliness to industry players, Singapore has still managed to attract many global companies in the cryptocurrency and web3 sectors to establish a foothold in the country. However, in the past year, the city-state has experienced several crises involving cryptocurrency players. three arrow capital, safe and hoddle nut.
However, the Monetary Authority of Singapore appears to remain committed to regulating cryptocurrency companies after recently granting licenses to them, including: coinbase and one. Gemini also said in June that it was preparing for growth in Asian markets. Plans to increase headcount in Singapore To over 100 employees.
Grab, a ride-hailing super app that is popular in Southeast Asia, is also starting to launch in earnest. web3 service integration With NFT wallet. In June I signed up to participate in a pilot study with MAS. Issues surround the use of three digital assets, including central bank digital currencies, tokenized bank deposits, and stable coins.
Japan, Korea, Taiwan
While Hong Kong and Singapore have emerged as Asia’s hottest cryptocurrency hubs, other jurisdictions such as Japan, South Korea, and Taiwan have also established regulations and guidelines for the nascent industry.
For example, Japan Last June, the Payment Services Act was revised. Enact regulations related to stablecoins. The Japanese government has reportedly worked to protect stablecoin investors following the collapse of TerraUSD. A positive outlook was promoted. USDC stablecoin issuer Circle has partnered with Japanese securities and banking giant SBI Holdings. To expand our presence in Japan
meantime, Busan, Korea’s second-largest city, has attracted two companies to apply to operate a digital asset exchange, ‘Busan Digital Asset Exchange’, with the goal of starting formal business in the first half of next year. presentation November.
The Korea National Pension Service, the world’s third-largest pension fund by assets, is also optimistic about the cryptocurrency industry. that Purchase of $19.9 million worth of Coinbase stock According to the company, in the third quarter of this year retention report.
Taiwan is also in the process of enacting more regulations for the cryptocurrency industry. Last October, Taiwan officially proposed a draft cryptocurrency bill for first reading that would require all cryptocurrency platforms operating in Taiwan to apply for a license. If they fail to do so, regulators may order them to cease operations.
Last September, Taiwan’s Financial Supervisory Service Cryptocurrency sector guidelines announced forms its own supervision rules. Potential industry associationsYung-Chang Chiang, a member of Taiwan’s National Assembly, told The Block that these measures lack legal enforcement power.
Previously, Taiwan required cryptocurrency trading platforms to comply with anti-money laundering laws after regulators. introduction Anti-Money Laundering Regulations July 2021.
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