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Hong Kong to Expedite Crypto Regulation Updates Amid Global Sector Growth
Hong Kong is set to accelerate updates to its crypto regulations in response to the rapidly expanding global cryptocurrency sector. The move comes as the city aims to maintain its competitive edge and adapt to the evolving needs of the industry.
The proposal to expedite regulatory changes was raised in the Legislative Council on December 11, highlighting the pressure on the government to keep pace with the global rise in crypto investments. Acting Secretary for Financial Services and the Treasury, Joseph Chan, acknowledged the opportunities presented by the virtual assets sector, while also recognizing the complexities it poses to the financial system.
Commitment to International Standards
Chan emphasized Hong Kong’s commitment to adhering to international standards, noting that the city plays a significant role in regulating and developing the virtual assets sector. However, he did not provide specific details on how or when Hong Kong plans to adjust its crypto regulations to remain competitive.
Some lawmakers have expressed concerns about the need for a more comprehensive approach to regulating cryptocurrencies like Bitcoin. There is speculation that Hong Kong may establish a dedicated department or commissioner to oversee crypto policies, following international trends.
Crypto-Assets and Fiscal Reserves
The question of whether cryptocurrencies should be included in Hong Kong’s fiscal reserves remains open. Chan pointed out that crypto-assets are not currently a target asset for Hong Kong’s Exchange Fund. However, he noted that external managers may invest in crypto-assets during investment operations, albeit in minimal proportions.
“It cannot be ruled out that there may be investments involving crypto-assets during the investment operations of the external managers at different points of time, but the relevant proportion is minimal.”
As Hong Kong navigates the complexities of crypto regulation, it is essential for investors and industry stakeholders to stay informed about the latest developments. For more news and updates on the global cryptocurrency sector, visit Global Crypto News.
