November 1, 2024
By Our Correspondent
Regulators and policymakers in Hong Kong have provided additional insights into upcoming initiatives and priorities aimed at reinforcing Hong Kong’s position as the premier cryptoasset hub within the Asia-Pacific region.
On October 28, Eric Yip, Executive Director for Intermediaries at the Hong Kong Securities and Futures Commission (SFC), announced during his address at Hong Kong Fintech Week that the regulator intends to form a “consultative panel” consisting of licensed virtual asset trading platforms (VATPs).
Since mid-2023, the SFC has been overseeing a VATP licensing framework that mandates compliance with regulations concerning anti-money laundering and counter-terrorism financing (AML/CFT), consumer protection, and other relevant issues. The proposed panel is designed to facilitate consultations between the SFC and licensed VATPs regarding the regulatory implications of emerging crypto-related products and services, as well as to pinpoint opportunities for enhancing compliance and risk management practices within the VATP sector.
Yip indicated that the panel aims to publish a white paper to guide the SFC and the industry in their endeavors. He also mentioned that the SFC anticipates granting additional VATP licenses before the year’s end.
In a separate session on the same day at Hong Kong Fintech Week, Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), along with representatives from the Hong Kong Treasury, delivered remarks that indicated further advancements in crypto-related initiatives.
Yue elaborated on the HKMA’s efforts to create opportunities for the private sector to investigate use cases for real-world asset tokenization, a growing blockchain application particularly relevant for banks and large financial institutions. The HKMA has recently introduced a regulatory sandbox initiative called Project Ensemble, which allows participating financial institutions to test tokenization projects.
Yue expressed that the Hong Kong Monetary Authority (HKMA) regards tokenization as a crucial opportunity to foster innovation within Hong Kong’s financial services industry.
He remarked, “We are convinced that tokenization can facilitate enhanced connectivity among users, data, and services, which is vital for promoting economic advancement and necessitates a forward-thinking transformation to keep pace with the ongoing technological developments.”
