TechFlow news, on December 30, the People's Bank of China released the "China Financial Stability Report (2024)", which includes references to global regulatory developments in cryptocurrency and highlights Hong Kong's progress in cryptocurrency compliance.
Given that crypto assets may pose spillover risks to financial system stability, regulators worldwide continue to strengthen oversight of crypto assets. In this context, China's Hong Kong Special Administrative Region has actively explored a licensing regime for crypto assets, classifying virtual assets into two categories: securitized financial assets and non-securitized financial assets. A distinctive "dual-license" framework is applied to virtual asset trading platform operators, subjecting them to both the Securities and Futures Ordinance and the Anti-Money Laundering Ordinance for regulatory and licensing purposes. Institutions engaging in virtual asset businesses must register and obtain licenses from relevant regulatory authorities before commencing operations. Meanwhile, Hong Kong requires major financial institutions such as HSBC and Standard Chartered to include crypto asset exchanges within their routine customer monitoring frameworks.
