TechFlow, Hong Kong Special Administrative Region Government publishes policy statement on the development of virtual assets in Hong Kong, clarifying the government's policy stance and direction for fostering a vibrant virtual asset industry and ecosystem in the city. The policy statement covers the following aspects:
1. Vision and Approach: As an international financial centre, Hong Kong adopts an open and inclusive attitude towards innovators worldwide engaged in the virtual asset sector. The government is working with financial regulators to create a conducive environment to promote sustainable and responsible development of the virtual asset industry in Hong Kong. It will introduce appropriate regulations in due course, mitigating actual and potential risks in line with international standards, so that virtual asset innovation can thrive sustainably in Hong Kong.
2. Regulation: The Hong Kong government believes that a consistent, clear and comprehensive regulatory framework will help 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 welcomes engagement 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, in the future, 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 regarding the regulatory regime for stablecoins.
3. Pilot Programmes: The government and regulators are exploring the launch of pilot programmes to test the technological benefits brought by virtual assets and to examine further applications of such technologies in financial markets. These pilot programmes include issuing non-fungible tokens (NFTs) for the 2022 Hong Kong Fintech Week, tokenization of green bonds, and the e-Hong Kong dollar (digital HKD).
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 programmes. The government sincerely invites the global virtual asset industry to collaborate with Hong Kong, leveraging the city’s status as an international financial centre and adhering to the best international standards and practices, to unlock the potential of financial innovation within a clear, flexible and facilitative regulatory environment.Source link
