HK fast-tracks digital assets licensing; S. Korea delays regulation
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Homepage > News > Finance > HK fast-tracks digital assets licensing; S. Korea delays regulation Hong Kong’s Financial Services and the Treasury have issued a reply to the region’s Legislative Council on the state of BTC and other digital assets amid rising global interests. The Legislative Council had previously sent a raft of questions to the financial regulator to ascertain Hong Kong’s strategy toward digital currencies in the face of impressive adoption rates and price spikes. The parliamentarians, led by Johnny Ng, sent four questions to the regulator to obtain a clear report on the government’s stance toward digital currencies. The first one sought to verify whether the government would improve the legal regime for digital assets in Hong Kong—raising a key point if the country would “further expedite improvement to the relevant regulatory regime.” The legislature sought clarification on the prospects of holding digital currencies in fiscal and strategic reserves and its implications on Hong Kong’s economy. Joseph Chan, Acting Secretary for Financial Services and the Treasury, responded to the queries posed by the Legislative Council. Chan noted that the government is paying close attention to global trends surrounding Bitcoin and other digital currencies, noting that it has taken preemptive steps to regulate the asset class. Chan opined that the government took the first step by ratifying the Financial Stability Board (FSB) recommendation for digital currency regulations into local rules. A policy statement released in October 2022 confirmed that Hong Kong will treat digital currencies as traditional financial instruments under the mantra of “same activities, same risks, same regulations.” Chan disclosed that the government had amended the Anti-Money Laundering and Counter-Terrorist Financing Ordinance to remain ahead of the curve. The rules imply a new licensing regime for virtual asset service providers (VASPs) and clear guidelines for stablecoin operations. The regulator noted that it will not be proceeding with a…
