Hong Kong Regulator Increases Staff To Oversee Crypto Market
2023.02.06 13:28
Hong Kong Regulator Increases Staff To Oversee Crypto Market
By Kristina Sobol
Budrigannews.com – When it comes to keeping an eye on what’s going on in the cryptocurrency industry, Hong Kong’s regulators are getting more proactive.
In order to “better supervise” the activities of local virtual asset (VA) providers, a Securities and Futures Commission report filed on February 6 stated that the company intends to hire four additional employees. Additionally, retail investors will be able to trade virtual assets on regulated platforms thanks to the additional oversight, which will enable them to “better assess the compliance and risk.”
The commission composed:
“This is in response to an increasing number of operators who have expressed interest in carrying out VA activities such as the management of VA funds and trading platforms,”
This comes at the start of a new licensing system that will let more retail crypto investors invest.
Regulators say that professional investors or investors with portfolios of at least $1 million (HK $8 million) were the only ones who could use previously licensed trading platforms in Hong Kong.
As an amendment to the Anti-Money Laundering and Counter-Terrorist Financing Bill, the new licensing system was approved in December 2022. However, it goes into effect in June 2023, giving local businesses and regulators time to prepare for a new wave of industry participation.
Hong Kong has taken active steps to revamp its cryptocurrency industry and establish itself as a center for Web3 innovation. A $500 million investment fund was included in this plan to encourage widespread adoption in the local industry.
Most recently, the Hong Kong Monetary Authority issued a statement stating that its newest regulation will not tolerate algorithmic stablecoins. The regulator, on the other hand, stated that it plans to create a robust regulatory framework for stablecoins based on the complete backing of such assets.
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