The Hong Kong SFC chief recently addressed a gathering where she spoke on how crypto trading was an integral part of the blockchain space.
Julia Leung Fung-yee, who heads the Hong Kong Securities and Futures Commission (SFC) as CEO, is in the news for a recent speech highlighting the importance of bringing crypto trading under the entire blockchain ecosystem.
Speaking of the major incidents of 2022 that showed how crypto regulation was the need of the hour, the Hong Kong SFC chief referred to the region’s adoption of crypto-friendly policies.
She said transparent crypto regulation was the only way to bring back trust to the blockchain ecosystem, and the new licensing regime in Hong Kong would ensure that. The new rules would require virtual asset service providers to remain compliant, ensuring investors and their crypto holdings are protected securely.
Stakeholders have lauded Hong Kong’s initiatives for the crypto industry for their role in using the opportunities of 2022 to introduce crypto regulation and promote the region as a crypto hub.
The rules under the regulation require exchanges to be extremely transparent and adhere to anti-money laundering and investor protection guidelines. Moreover, retail investors in Hong Kong are also allowed to trade digital assets with institutional investors.
Interestingly, the Hong Kong SFC’s positive comments on crypto starkly contrast with regulators in China, who still have strict rules against crypto. Though crypto firms have flocked to Hong Kong in 2023, China has been wary of the crypto industry.