Hong Kong securities regulator adds crypto personnel for industry supervision

Regulators successful Hong Kong are stepping up their crippled erstwhile it comes to monitoring the activities of the crypto industry. 

According to a Securities and Futures Commission (SFC) study filed connected Feb. 6, it plans to prosecute 4 further unit to “better supervise” the activities of section virtual plus (VA) providers. Moreover, the other oversight volition assistance “better measure the compliance and risk” successful allowing retail investors the accidental to commercialized virtual assets connected regulated platforms.

The committee wrote:

“This is successful effect to an expanding fig of operators who person expressed involvement successful carrying connected VA activities specified arsenic trading platforms and the absorption of VA funds.”

This comes astatine the onset of the instauration of a caller licensing authorities to let greater retail crypto investment.

Previously trading platforms licensed successful Hong Kong were lone permitted to service nonrecreational investors, oregon investors with portfolios of astatine slightest $1 cardinal (HK $8 million), according to regulators. 

Related: Hong Kong lawmaker wants to crook CBDC into stablecoin featuring DeFi

In December the caller licensing authorities was approved successful the signifier of an amendment to the Anti-Money Laundering and Counter-Terrorist Financing Bill. However, it takes effect successful June 2023, which has fixed clip for regulators and section businesses to hole for a caller question of information successful the industry.

Hong Kong has been progressive successful its program to revamp its crypto industry, successful bid to go a hub for Web3 innovation. A portion of this program included an concern money of $500 cardinal to propulsion for wide adoption successful the section manufacture scene.

Most recently, the Hong Kong Monetary Authority came retired with a connection saying that it volition not tolerate algorithmic stablecoins successful its newest regulation. However, the regulator said that it intends to make a full-bodied regulatory model for stablecoins, which volition beryllium based connected the afloat backing of specified assets.