Hong Kong is stepping up its game in the crypto world by speeding up the licensing process for crypto trading platforms.
With the region wanting to become a major crypto hub, this move comes at a time when competition is clearly heating up.
Quick licensing for crypto firms
Joseph Chan, the Acting Secretary for Financial Services and the Treasury, the FSTB, announced in parliament that the Securities and Futures Commission is set to streamline the licensing process.
They’re also planning to create a consultative panel that will kick off early next year to help licensed trading platforms navigate the local legal environment.
Since June 2023, Hong Kong has been rolling out the red carpet for crypto firms, officially launching a licensing regime that allows licensed exchanges to offer retail trading services.
So far, companies like OSL Exchange, HashKey Exchange, and HKVAX have received their licenses.
Regulating stablecoins
But it’s not just about trading platforms, because the government is also getting ready to regulate stablecoins.
Chan revealed that they’ve released consultation documents aimed at fiat-referenced stablecoin issuers.
He plans to introduce a legislative bill to the Legislative Council within this month, which would require all fiat-referenced stablecoin issuers to obtain a license from the Hong Kong Monetary Authority.
Focus on crypto custody
On top of all that, regulators are looking at crypto custody services as well, and Chan mentioned that there will be a proposal to license crypto custodians next year.
This shows that Hong Kong is quite serious about creating a comprehensive regulatory framework for all aspects of cryptocurrency, and is determined to position itself as a leading player both in the regional and the global crypto market.
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