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The Hong Kong Financial Regulator Made Important Statements About Crypto

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After the crypto industry left the country, the regulator says it is now going to the market and the industry. HONG KONG – Christopher Hui first heard about crypto from friends who run mutual funds and invest in virtual assets. Today, as Hong Kong’s Financial Services and Treasury Secretary (FSTB), he is shaping the policy direction for the sector.

During Hong Kong’s FinTech week, held in early November, he asked one of his employees if he could get his first piece of equipment. The company is piloting a non-fungible token (NFT) – one of the few pilots that the regulator is turning over, and the tokenization of the green card and digital banking (CDBC), e-HKD.

Although the company knew for some time that the system was coming, it did not expect this change in situation. Many FinTech Week booths and panels related to the metaverse, and ruling leaders came out in force to prepare for the country’s return as a crypto hub, of which Hui is best known.

Crypto now falls under many regulators in Hong Kong. Hong Kong’s financial regulator oversees stablecoins, while the Securities and Futures Commission takes enforcement action.

Hong Kong’s FSTB Lays Groundwork for Cryptocurrency Regulation as Hui Expresses Optimism for Investment Potential

Hui’s main department, FSTB, lays the groundwork for the law. The way it shows that it is happening is to put crypto in financial law and show the opening of the discussion point as to allow the buyers to trade in the regulatory system coming in, which was previously national.

Hui’s quality and appearance on the Hong Kong FinTech Week panel discussing crypto makes it clear that Hong Kong regulators see it as part of the country’s economic future. Hui echoed the sentiments of other high-profile figures from Hong Kong regulators, who see crypto as falling behind traditional currencies. When asked about his thoughts on the fundamentals of crypto, Hui said that he views crypto as an investment tool rather than an attempt to withdraw from fiat currency. He seems to be optimistic about his application. “It is believed to be a revolution in the way society and the economy work,” he said of the underlying technology in an interview, adding that “it was not built from day one until the day”.

Hong Kong’s FSTB Director Hui Discusses Potential for Cryptocurrency and Technology to Streamline Investments and Reduce Costs

What matters most to him is the use case: “What I’m thinking is to see through those investments and look at what’s behind them, what supports them,” he said. He said that he is very excited about the tokenization of the green chain, which simplifies what can be a difficult investment and investment process.

Hong Kong has already issued $10 billion in greenbacks in several currencies, including the US dollar, euro and renminbi. The pilot will focus on the company and all costs, from the participation in planning, asset management, secondary marketing and retention.

Hong Kong’s Role as China’s Gateway to International Relations and Virtual Infrastructure

Hui also said that there are many areas where technology can solve problems, reducing subscriptions and initial public offerings, for example. Comparisons are often made between Hong Kong and Singapore and the competition between the two to capture business. For Hui, Hong Kong’s “one country, two systems” is a key differentiator, referring to how the city is part of China but can regulate its own affairs. He talked about an accelerated program that allows Hong Kong companies to set up offices in China.
The blocks are ready

Hong Kong’s central government often plays a central role between China and the rest of the world. However, when it comes to virtual infrastructure, given the ban in China, Hong Kong is not doing the job – so what role is it playing?

“We can collect money all over the world,” Hui said. “We can manage and deliver these investments in a well-planned and sustainable way.”

He emphasized Hong Kong’s credibility as China’s gateway to international relations. Hui says this is a combination of factors citing Hong Kong’s “laws, regulations, business modus operandi”.

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Hong Kong Monetary Fund’s Potential Investment in Cryptocurrency Industry and Role in International Financial Institution

Hui declined to specify whether the new Hong Kong Monetary Fund would consider investing in the crypto industry. “They are held back by their own laws and policies,” he said. CoinDesk wrote that the companies are not sure whether Hong Kong can set its own crypto policy. Hui firmly believes that it is possible. When asked if Beijing has given the regulator assurances on cryptocurrencies in particular, Hui said, “It’s more business than usual because we always work together no, two systems. we have our own system, we have our own rules. system.

Over the past month, all eyes on the Congress Party have been moving across the border, as Xi Jinping’s third term has been confirmed. Chinese stocks soon fell. Political developments have affected investor confidence in Hong Kong. But Hui wasn’t too worried. “Hong Kong is an international financial institution, so our product performance reflects a comprehensive perspective,” Hui said. He said that the business is doing well. “No systemic risk has been identified,” he said. He would even like the crypto industry to leave China. “Hong Kong is an open place,” Hui said. “Everyone respects our laws and what we want is acceptance.”

With the new VASP government in discussion, Hui said the “barriers are ready” to build an environment. “We are very clear about our position,” he said, calling it “a much stronger basis.”

Change in The Market

During the opening of Fintech Week, Hong Kong announced that it is trying to return as a crypto hub. The regulator said it is ready to discuss crypto futures (ETF) exchange-traded funds and allow exchanges that have the authority to serve traders.
Until a few months ago, there was no indication that Hong Kong was considered anything other than a place for professional investors to spend money. “It goes on,” Hui said. “We are growing in the market, we are growing with the company, we are on the journey with them to reduce risk, manage it and grow these systems.”
The previous policy directive prevented the platform from being licensed to provide services to commercial customers, but it also required all changes to obtain a license. Currently, retail customers often use unlicensed platforms.

Investors in Hong Kong can invest in US crypto ETFs which may offer higher returns than those in Hong Kong. Still, the announcements suggest that other options are on the table.

That administrators are open to dialogue is a recurring theme in Hui’s responses. He stopped short of providing further details about the laws, regulations and regulatory requirements that may apply to retail investors. “We will analyze the market,” he said. Although there are already reports that Hong Kong will be open for business, the rules, regulations and timing are yet to be determined. He stressed the importance of business education. Hong Kong’s bid to return as a crypto hub comes amid a year of market turmoil, which has seen the crash of Terra, the withdrawal of capital funds and jurisdictions such as Singapore tightening regulations on cryptography.

“It came out of nowhere,” Hui said of the moment. He shared the experience accumulated in Hong Kong by introducing a regulatory framework for virtual asset exchanges to obtain certain licenses for securities trading and providing automated trading services as well as fund managers buying virtual assets.
This crypto winter could make people more aware of what works and what doesn’t, he said. “Now is a good time to investigate.”

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