🚨 Time is Running Out: Reserve Your Spot in the Lucky Draw & Claim Rewards! START NOW
Learn to gain real rewards

Learn to gain real rewards

Collect Bits, boost your Degree and gain actual rewards!

New
Video Courses
Video Courses
Deprecated
Scale your career with online video courses. Dive into your learning adventure!

Self-Regulatory Crypto Framework Proposed in Hong Kong

Key Takeaways

  • The HKSFPA proposes that Hong Kong's crypto firms form self-regulatory committees;
  • These self-regulating bodies would take over some licensing duties from the SFC;
  • Hong Kong aims to shift focus from stringent oversight to supporting financial industry growth.
Self-Regulatory Crypto Framework Proposed in Hong Kong

The Hong Kong Securities and Futures Professionals Association (HKSFPA) has put forward a proposal for the city's crypto firms to establish independent self-regulatory committees.

This was detailed in a recommendation letter dated April 22, where the HKSFPA argues that the current regulatory approach, which centers on oversight, could restrain the financial sector's overall growth.

What is Basic Attention Token (BAT)? Brave Browser EASILY Explained

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

What is Basic Attention Token (BAT)? Brave Browser EASILY Explained

What is Basic Attention Token (BAT)? Brave Browser EASILY Explained What is Basic Attention Token (BAT)? Brave Browser EASILY Explained

The recommendation includes creating statutory self-regulating organizations that would assume some of the licensing responsibilities currently held by the Securities and Futures Commission (SFC). These new bodies would include industry members from various financial sectors, such as securities, futures, asset management, and virtual assets.

While the SFC would maintain oversight of market conduct, the industry would internally manage licensing. The translated letter adds:

Self-regulatory agencies have the power to lead and coordinate the development of the securities industry, including approving new securities dealers, approving advertisements, censuring licensed intermediaries that violate business rules, and even imposing limited sanctions within the scope of their powers.

Hong Kong has previously shown a more tolerant stance towards virtual asset firms compared to other regions. On April 15, the SFC approved several applications for spot Bitcoin and Ether exchange-traded funds (ETFs).

Through its advocacy for self-regulation, Hong Kong aims to strike a balance between supervision and industry development, hoping to avoid the pitfalls of excessive regulatory control while enhancing its role as a financial leader.

In contrast, the regulatory climate in the United States remains tough, with the Securities and Exchange Commission (SEC) yet to approve spot Ether ETFs.

Aaron S., Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

Loading...
binance
×
Verified

$600 WELCOME BONUS

Earn Huge Exclusive Binance Learners Rewards
Rating