Catenaa, Tuesday, December 17, 2024 – Hong Kong is fast-tracking the licensing of cryptocurrency trading platforms, aiming to solidify its position as a global digital asset hub.
The move comes amid increasing competition from regions like Singapore and the UAE.
Joseph Chan, Acting Secretary for Financial Services and the Treasury, revealed that the Securities and Futures Commission (SFC) plans to implement a swift licensing process.
A consultative panel is set to launch early next year to assist licensed platforms. Since the licensing regime began in June 2023, firms such as OSL Exchange, HashKey Exchange, and HKVAX have received approval to serve retail investors.
Beyond licensing, Hong Kong is advancing legislation to regulate stablecoins. The proposal requires fiat-referenced stablecoin issuers to secure licenses from the Hong Kong Monetary Authority (HKMA). The bill, expected to be introduced to the Legislative Council this month, aligns with global trends to tighten oversight of stablecoin activities.
The SFC is also drafting rules to license crypto custody services by 2024, addressing security concerns and boosting investor protection. In addition, the HKMA has cautioned crypto firms against misusing the term “bank” in marketing materials, reinforcing regulatory boundaries.
To attract investors, Hong Kong is offering tax exemptions for hedge funds, private equity firms, and high-net-worth individuals on cryptocurrency profits. The government has initiated a six-week consultation to refine these proposals, further strengthening its appeal as a financial hub.
