Christopher Hui – the secretary of Hong Kong’s Financial Services and the Treasury (FSTB) – is presently constructing a policy direction to cover the crypto sector. The bureau is conducting a pilot offering of non-fungible tokens (NFTs). This is among several pilots being rolled out by the regulator in addition to the green bonds’ tokenization as well as the e-HKD (a central bank digital currency).
Though the industry has been waiting for a regulatory agenda, no shift was expected by it in its stance. Several of the panels and stalls at FinTech Week dealt with the metaverse. Prominent regulators came to the front to promote the comeback of the city as a hub for cryptocurrency and Hui was one of them. At present, crypto is being regulated by several regulatory bodies in Hong Kong.
The city’s Monetary Authority is moving toward stablecoins. FSTB, the department headed by Hui, presented a considerably macro approach to the regulation of crypto. It appears to bring crypto the regulatory span. This paves the way toward debates over permitting retail investors in line with the looming regulatory agenda. Hui appeared at Hong Kong FinTech Week and repeated the viewpoints of the local regulatory entities.
As per him, crypto was more than just an investment instrument. He stated that crypto can offer freedom from conventional currency. He appeared cautiously positive about the applications of crypto. Likely, it provides transformation to the operations of the economy and overall society. In Hui’s words, the use cases are more significant in the case of crypto.
He expressed enthusiasm for green bonds’ tokenization saying that this streamlines the awkward procedure of investment and issuance. Up to $10B value has in advance been issued by Hong Kong in multiple currencies. These take into account the renminbi, euro, and the US dollar. The pilot will pay attention to organizations and the overall value chain including the things between issuance and settlement.
Along with this, the secondary trading, retention, and offering of assets are also factors to be taken care of. Hui added that they have the potential to combine investments around the globe. As per him, they can organize and additionally channel the respective investments in an adequately sustainable and well-regulated manner.
Hui did not provide additional details about any investments to be made by the exclusively established Hong Kong Monetary Fund into crypto firms. It was formerly reported that it is yet not confirmed whether the city can establish its distinctive policy for crypto. During the previous month, considerable attention was grasped by the Party Congress in China where the 3rd term of Xi Jinping was confirmed.
Regulator Welcomes Crypto Entities Quitting China
The stocks of the country slumped after. Investor confidence has been influenced by the political developments in Hong Kong. However, Hui did not express any worry. He asserted that Hong Kong plays the role of a worldwide financial center. As he puts it, the stock performance of the city denotes overall sentiment. As per him, the market operations were smooth and no systematic risk was posed.
He also mentioned that the crypto platforms quitting China should enter Hong Kong while meeting the regulations and laws. Hong Kong’s endeavor to return as a center for crypto is witnessed following a year of comprehensive market turmoil. Liquidation of VC funds, Terra collapse, and the implementation of stringent regulations by Singapore and other such jurisdictions have been a few important events that took place in 2022.
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