Hong Kong SFC to Establish ‘Consultative Panel’ for Licensed Crypto Exchanges

  • October 30, 2024
Hong Kong SFC to Establish ‘Consultative Panel’ for Licensed Crypto Exchanges
  • The SFC’s Eric Yip stated the panel will consist of agents from each certified exchange.

  • He anticipates the panel to establish a roadmap for crypto services and products.

The Hong Kong Securities and Futures Commission (SFC) prepares to produce a consultative panel for certified cryptocurrency exchanges in the city next year, stated Eric Yip, the SFC’s Executive Director, Intermediaries.

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  • Speaking at Hong Kong Fintech Week on Oct. 28, Yip stated the panel will consist of agents from each certified exchange and would develop neighborhood openness and shared obligation amongst licensees.

    “We anticipate the panel consideration will lead to a detailed virtual possessions white paper that lays out the advancement roadmap for services and products, along with prospective improvement in compliance and danger management,” he stated.

    The relocation will become part of the city’s effort to develop an extensive structure for digital properties, that includes upcoming legislation for OTC trading and stablecoins.

    Previously this year, Hong Kong generated a brand-new licensing routine for virtual possession trading platforms. 3 are presently accredited in the city and Yip stated the SFC was presently processing the application of another 14, 11 of which have pre-existing services in Hong Kong. He included that he anticipated more licenses to be given by the end of this year.

    Yip likewise warned that while virtual properties were at the leading edge of the program for monetary regulators worldwide, financiers still require to be safeguarded through guideline and education.

    In the very first half of this year, HK$ 1.5 billion ($193 million) was lost to financial investment scams in the city, while scams and rip-offs represented nearly half of reported criminal offenses, according to an authorities declaration. It did not release outcomes on the number of these cases included cryptocurrency however figures from 2023 program that crypto-related scams represented over half of financial investment scams losses.

    “At the SFC, we securely think the future of virtual properties depends on a controlled market that stabilizes its advancement with financier defense. We do not require to transform a lot of wheels, as our experience in securities guideline lays a strong structure,” Yip stated.

    He required higher cooperation in between various regulators worldwide to avoid exchanges from playing “regulative arbitrage”.

    It is showing to be an obstacle. A few of the greatest exchanges worldwide have actually left of the Hong Kong licensing application procedure, consisting of OKX, HTX and a regional Binance-backed exchange.

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