Hong Kong’s Web3 industry can look forward to more regulatory clarity, with the city set to release its cryptocurrency exchange licensing framework in May, said Julia Leung, chief executive of the Securities and Futures Commission, at an event organized by Bloomberg on Thursday.
See related article: Hong Kong’s new crypto regulation may lure Web3 firms back, experts say
Fast facts
- The digital asset framework follow a consultative process that began in February, which has received over 150 responses, said Leung, according to Bloomberg.
- The proposed guidelines are based on existing traditional finance laws and would require crypto-related service providers to apply for a license from the commission.
- Set to take effect in June, the new regulations will require firms to share details of how they plan to combat money laundering and ensure investor protection.
- The new licensing regime would establish standards and regulations for crypto in Hong Kong, where its officials have been promoting the city as an Asian crypto hub since last year.
- At least 80 firms have expressed interest in applying for a crypto license in the city.
See related article: Hong Kong to mandate stablecoin licensing as early as this year