- Hong Kong accelerates crypto licensing with SFC planning streamlined approvals for virtual asset trading platforms by year-end.
- HKMA explores digital bonds, supporting tokenized securities while whispers about the Exchange Fund’s crypto interest continue.
Hong Kong is stepping up its efforts to promote itself as a global crypto hub by implementing important regulatory changes. Plans to expedite the virtual asset trading platform (VATP) clearance process have been revealed by the Securities and Futures Commission (SFC).
By the end of the year, one expects the first official permits under this structure. By means of on-site inspections and direct interaction with the management of these platforms, the SFC hopes to guarantee compliance and openness with this program.
Hong Kong’s Crypto Power Play: Faster Licenses, State Moves
Hong Kong is speeding up its crypto licensing game, with the SFC rolling out a streamlined approval process early next year.
Meanwhile, whispers of the Exchange Fund dabbling in crypto are heating up; while the HKMA… pic.twitter.com/JYvgrdJo48
— Mario Nawfal’s Roundtable (@RoundtableSpace) December 12, 2024
Building Collaboration for a Balanced Crypto Ecosystem
The SFC is scheduled to add a consultation panel for licensed VATPs in early 2025, hence augmenting this momentum. This project seeks to improve communication between industry players and authorities so that wise decisions and policy development may result.
By interacting directly with stakeholders, Hong Kong aims to establish a balanced climate that advances innovation without endangering financial stability.
Among these legislative actions, rumors regarding the possible interest of the Exchange Fund in digital assets are attracting attention. Though the Hong Kong Monetary Authority (HKMA) has not formally stated any participation in crypto investments, rumors about such opportunities highlight the increasing importance of digital assets in general financial conversations.
With its Digital Bond Grant Scheme, which helps tokenized bond issuances, the HKMA has concentrated on advancing the larger digital securities industry.
Simultaneously, Hong Kong’s aspirations in the crypto sphere transcend financial projects and licensing rules. As we previously reported, the city revealed late November plans to exempt hedge funds, private equity funds, and ultra-high-net-worth individuals from capital gains taxes on crypto income.
These initiatives to develop Hong Kong as a top crypto center, nevertheless, might cause the city to rethink such tax exemptions going forward.
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