The Hong Kong Securities & Futures Professionals Association (HKSFPA) has proposed setting up a self-regulatory body for the crypto industry in Hong Kong. In their latest recommendation letter, they emphasized the importance of having an independent organization to manage industry growth, as they believe there is currently too much regulatory attention on one area.
The HKSFPA states that Hong Kong’s financial sector places too much emphasis on regulation at the expense of promoting industry expansion. To fill this void, the association recommends creating a self-governing organization. An alternative suggestion is for the Securities & Futures Commission (SFC) to transfer licensing powers to industry players.
In this setup, the Securities and Futures Commission (SFC) would be responsible for overseeing market behavior, while the power to grant licenses would be given to a group made up of different industries such as securities, futures, asset management, and virtual assets.
Balancing Oversight and Development
When promoting self-regulation, the HKSFPA recognizes the significance of striking a balance between supervision and business progress. This suggestion emphasizes the necessity for Hong Kong to remain competitive on the global financial stage and strengthen its position as a leading international financial center.
Yet, the push for self-regulation in the crypto sector arises as the world closely examines how cryptocurrencies should be governed. Instances like those in Lithuania, where regulatory changes are being implemented due to past compliance issues and misconduct within the crypto industry, act as warnings.
The Regulatory Landscape
Significantly, the approval of crypto ETFs by Harvest Fund Management and Bosera Asset Management on April 15 by the Securities and Futures Commission (SFC) in Hong Kong highlights the city’s receptiveness to cryptocurrency advancements. Furthermore, the granting of official virtual asset licenses to exchanges Hashkey and OSL by the regulator shows Hong Kong’s dedication to creating a favorable business climate for crypto-related ventures.
In the process of determining crypto regulations in Hong Kong, there is an increasing demand for self-governance. This approach offers both advantages and difficulties. Hong Kong intends to walk a fine line between strict regulation and market advancement by encouraging the development of self-regulatory bodies within the industry.
Yet, for this method to work effectively, it’s essential that industry players and regulatory bodies in Hong Kong cooperate closely to maintain the security and reliability of its cryptocurrency marketplace.
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2024-04-22 23:48