Hong Kong to Review Crypto Regulations as Industry Evolves, Says Finance Secretary

BySamson Ononeme

Jul 3, 2024 ,
Christopher Hui, Hong Kong's finance secretary, states regulators will review crypto-related activity requirements.

Key Insights

  • Hong Kong’s finance secretary Christopher Hui says regulators will review crypto-related activity requirements as the industry evolves.
  • Licensed corporations can distribute crypto products after notifying regulators without modifying licensing conditions.
  • Several global exchanges withdrew license applications in May, prompting concerns about Hong Kong’s stringent regulations.

HONG KONG (MarketsXplora) – Hong Kong’s Secretary for Financial Services and the Treasury, Christopher Hui, announced today that the city’s regulators will review requirements for cryptocurrency-related activities as the industry develops.

Speaking at a parliamentary questioning session, Hui stated that the Hong Kong Monetary Authority and the Securities and Futures Commission (SFC) would “keep in view market developments and review the requirements on VA-related activities as appropriate.”

Hui’s comments came in response to a lawmaker’s inquiry about potentially expediting the vetting process for crypto licenses and relaxing rules for the distribution of crypto assets by intermediaries.

The finance secretary clarified that licensed corporations or registered institutions can distribute crypto-related products after notifying regulators, without the need to “apply for modification of licensing conditions.”

This development follows the withdrawal of license applications by several global exchanges, including OKX, Gate.io, and HTX, in May. The exodus occurred ahead of a June 1 deadline set by the SFC, which mandated that all crypto trading platforms operating in Hong Kong must be either licensed by the SFC or “deemed-to-be-licensed” applicants.

Read also! Hong Kong’s SFC Flags Three Crypto Platforms for Deceptive Practices

The stringent licensing regulations have drawn criticism from some quarters. Duncan Chiu, a Hong Kong lawmaker, has expressed concerns that the rules are “excessively stringent” and have deterred major global exchanges from entering the Hong Kong market.

In an opinion piece published last month, Chiu argued that the license withdrawals have “shaken the confidence of market participants in Hong Kong’s push to develop Web3.”

Samson Ononeme

Meet Samson Ononeme, a dynamic writer, editor, and CEO of marketsxplora.com. With a passion for words and a sharp business acumen, Samson captivates readers with captivating storytelling and delivers insightful market analysis. He is a trailblazer in the finance industry, empowering individuals with knowledge and shaping the narrative of money. Get ready to be inspired by his literary prowess and entrepreneurial leadership.

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