TechFlow news — The Hong Kong Special Administrative Region Government has issued a policy statement on the development of virtual assets in Hong Kong, setting out its policy position and strategic direction for fostering a vibrant virtual asset industry and ecosystem in the city. The policy statement covers the following areas:
1. Vision and Approach: As an international financial center, Hong Kong welcomes innovators from around the world engaged in the virtual asset industry. The government is working with financial regulators to create a conducive environment to promote sustainable and responsible growth of the virtual asset sector in Hong Kong. It will introduce appropriate regulations at the right time, mitigate actual and potential risks in line with international standards, and enable virtual asset innovation to thrive sustainably in Hong Kong.
2. Regulation: The Hong Kong government believes that a consistent, clear, and comprehensive regulatory framework will establish a solid foundation to embrace financial innovation and technological advancement driven by the rapid global development of virtual assets. While actively preparing for a new licensing regime for virtual asset service providers, Hong Kong is also eager to engage with the global virtual asset industry and invites relevant exchanges to explore business opportunities in the city.
The Securities and Futures Commission (SFC) will launch a public consultation on the suitability of retail investor access to virtual assets under the new licensing regime. The government welcomes the potential introduction of virtual asset exchange-traded funds (ETFs) in Hong Kong.
The government remains open to reviewing the property rights of tokenized assets and the legal status of smart contracts to facilitate their development in Hong Kong.
The Hong Kong Monetary Authority (HKMA) will later publish the results of its consultation and outline next steps on the regulatory framework for stablecoins.
3. Pilot Programs: The government and regulators are exploring the launch of pilot programs to test the technological benefits brought by virtual assets and to further apply such technologies in financial markets. These pilot initiatives include issuing non-fungible tokens (NFTs) for the 2022 Hong Kong FinTech Week, tokenization of green bonds, and the e-HKD (digital Hong Kong dollar).
4. Outlook: Hong Kong will implement the vision set out in this policy statement through enabling policies, comprehensive and balanced regulation, risk-based controls, and various pilot programs. The government sincerely invites the global virtual asset industry to collaborate with Hong Kong, leveraging its status as an international financial center, adhering to the best international standards and practices, and unlocking the potential of financial innovation within a clear, flexible, and facilitative regulatory environment.Source link
