
According to local media, the Hong Kong Securities Regulatory Commission will draft new regulatory provisions to implement under the new crypto regulatory system in the wake of the FTX demise. report.
The commission reportedly claimed that FTX’s influence had impacted other crypto tokens and the crypto industry as a whole. This incident illustrates the devastating effects that can occur from using a fully unregulated trading platform.
The question, according to the European Commission, is whether the regulatory framework can guarantee the financial security of investors.
The commission also noted the initiation of public consultations to monitor the industry and update regulations accordingly.
Hong Kong exchange
On October 31st, the Hong Kong government released a crypto policy statement, revealing that it plans to create a thriving sector and ecosystem for crypto.
The new regulations will allow cryptocurrency exchanges to apply for a license to officially operate in the country.
The statement added that all exchanges will be required to comply with anti-money laundering, counter-terrorism financing, and investor protection laws.
Hong Kong and crypto
Hong Kong has publicly taken a positive stance on cryptocurrencies, accepting them as part of the existing financial system. On July 17, Eddie Yue, his CEO of the Hong Kong Monetary Authority (HKMA), referred to the technical advantages of cryptocurrencies, stating:
The technology and business innovations behind these developments could be important for the future financial system.
Hong Kong will also classify NFTs as financial assets in June 2022, with great success coming from the Central Bank Digital Currency (CBDC) project mBridge in October 2022.