Updated: July 3, 2024, 3:44 AM EDT
Hong Kong’s financial secretary said the regulator will “review requirements” for cryptocurrency-related activities as needed as the industry develops.
Christopher Hui, Minister of Financial Services and Treasury, said The Hong Kong Monetary Authority and the Securities and Futures Commission “will monitor market developments and review requirements for VA-related activities as appropriate,” the Legislature heard today. He made the remarks when a lawmaker asked whether the regulator would speed up the cryptocurrency licensing review process and relax rules for intermediaries to distribute crypto assets.
Hui noted that licensed companies or registered entities can distribute cryptocurrency-related products after notifying the regulator, and “there is no need to apply for a change in licensing conditions.”
The question was raised after a number of global exchanges, including OKX, Gate.io, and HTX, withdrew their applications for a license in Hong Kong in May ahead of the deadline set by the SFC. The regulator said that from June 1, all cryptocurrency trading platforms operating in Hong Kong must be licensed by the SFC or be “deemed authorised” applicants.
Duncan Chiu, a member of Hong Kong’s legislature, Raise a concern It criticised what it called “overly stringent” licensing regulations, saying they were keeping major global exchanges out of Hong Kong.
Chiu wrote: Opinion piece It reported last month that the withdrawal of licenses from several exchanges had “shaken market participants’ confidence in Hong Kong’s Web3 development drive”.
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