A new regulatory framework for crypto assets is expected to be in effect in Hong Kong by July of this year, as the city competes with Singapore to become a major centre for the expanding industry while minimizing the risks.
According to a statement on the Hong Kong Monetary Authority’s website, the regulator is now approaching the crypto industry from three perspectives: stablecoins which can be used for payments, investor protection, and how authorized institutions interact with digital assets.
In line with their counterparts throughout the world, Hong Kong regulators are moving toward stronger control of an industry that is characterised by extraordinary volatility and a high incidence of scams. According to a story published last week by Bloomberg News, customers of a Hong Kong cryptocurrency exchange were unable to make a withdrawal or tokens since late November.
The HKMA intends to take a “same risk, same regulation” approach to cryptocurrency, according to Chief Executive Eddie Yue, who made the announcement in a statement.