The Chinese central bank promotes Hong Kong’s crypto license effort amid worldwide regulatory changes

Despite the fact that numerous countries have implemented prohibitions on the trading of virtual assets, Hong Kong continues to pursue crypto licensing.

The People’s Bank of China emphasized the progress that Hong Kong has made in the implementation of crypto licensing in its most recent China financial stability report, despite the extensive regulatory changes that have occurred both internationally and in mainland China.

As of now, Hong Kong remains one of the most crypto-friendly cities, despite the fact that 51 nations have already banned cryptocurrencies.

Hong Kong has made substantial progress in its regulation and licensing procedures, as per the People’s Bank of China. The Financial Stability Board’s recent regulatory adjustments to the international framework for crypto assets and mainland China’s ongoing restrictions on crypto trading have not impeded this progress.

In its annual China Financial Stability Report, the bank underscored the Securities and Futures Commission (SFC)’s role in the regulation and licensing of Hong Kong firms. The bank’s report indicates that the commission supervises virtual assets under two categories: securitized financial assets and non-securitized financial assets. Additionally, the commission enforces a distinctive “dual license” system for digital asset exchanges.

Crypto asset businesses are required to obtain licenses from the commission, and major financial institutions, such as Standard Chartered Bank and HSBC, are also required to integrate virtual asset platforms into their routine consumer monitoring processes.

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