Hong Kong to Release Licensing Guidelines for Crypto Exchanges
DDHK. ORG - Hong Kong will release licensing guidelines for crypto exchanges. Hong Kong's Web3 Industry is looking forward to more regulatory clarity in this regard. In the near future, Hong Kong will release an exchange license framework currency this is in May 2023.
As reported Liputan6, this was conveyed directly by the chief executive of the Hong Kong Securities and Futures Commission, Julia Leung.
"This digital asset framework follows a consultative process that began in February 2023, which has received more than 150 responses," said Leung, quoted from Yahoo Finance, Friday (28/4/2023).
The proposed guidelines are based on existing traditional finance laws and will require providers of crypto-related services to apply for licenses from regulators.
Set to take effect in June, the new regulations will require companies to share details on how they plan to fight money laundering and ensure investor protection.
The new licensing regime will set standards and regulations for cryptocurrencies in Hong Kong, where officials have been promoting the city as an Asian crypto hub since last year.
At least 80 companies have expressed interest in applying for licenses of this currency in the city.
Hong Kong is one of the cities that is quite progressive in crypto regulation. Whereas before, China officially banned crypto. However, Hong Kong as an autonomous city currently has ambitions to become a crypto hub in Asia.
This step is supported by various parties, recently a Hong Kong-based venture fund company, Plutos VC, plans to raise USD 100 million or the equivalent of IDR 1,4 trillion (assuming an exchange rate of IDR 14.693 per US dollar) by the end of 2023 to fund investments in cryptocurrency market.
The fundraising comes as Hong Kong moves to regain its status as an international financial and crypto center.
The fund, called ProDigital Future, will invest in a variety of digital assets, including Bitcoin, Ethereum, and other altcoins, targeting early-stage Web 3.0 enterprises.
Plutus VC hopes to attract institutional investors, high-income individuals and family offices interested in investing in crypto. [DDHK News]
