- Regulators are ready to give licenses to crypto companies and exchanges.
- Crypto exchanges are now subject to regulations that are on par with conventional banks.
On Monday, Paul Chan, Hong Kong’s Financial Secretary, reaffirmed the region’s dedication to developing into a major crypto powerhouse. To investigate the possibility of retail engagement in the sector. Hong Kong has also encouraged crypto firms and startups to provide services. As regulators are ready to give licenses to crypto companies, cryptocurrency exchanges may now register under the present licensing scheme.
Bloomberg reported on January 9 that Hong Kong Financial Secretary Paul Chan reaffirmed the city’s commitment to developing into a worldwide crypto powerhouse at the Hong Kong Web3 Innovator Summit.
Engaging Mainstream Crypto Businesses
There has been a lot of talk about Hong Kong being the new home base or a major growth point for a number of major IT companies and startups. In addition, cryptocurrency exchanges have shown an interest in expanding into the area, which would be beneficial to the growth of the industry there.
The Hong Kong government has finished the legislative process necessary to establish a licensing scheme for virtual asset service providers. Cryptocurrency exchanges are now subject to regulations that are on par with those imposed on more conventional banks.
The city is also launching a consultation on crypto platforms, according to Under Secretary for Financial Services and the Treasury, Joseph Chan. It will aid in the assessment of the feasibility of mainstream crypto business engagement.
Rising interest from both individual and institutional investors has Hong Kong planning to become a center for the cryptocurrency industry. Additionally, due to Singapore’s recent hardening of its position on cryptocurrencies, many such businesses have relocated to jurisdictions with fewer restrictions.
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