The Hong Kong Securities and Regulatory Commission plans to draft new regulatory provisions to implement under its new crypto regulation system in the wake of FTX’s collapse, according to local media reports.
According to reports, the Commission claimed that the FTX crash had also affected other virtual tokens as well as the entire cryptocurrency industry. The potential dangers of trading on a platform that isn’t fully regulated are evident in this incident.
The Commission says the question is whether investors can be guaranteed financial safety by a regulatory framework.
The Commission mentioned that they would launch a public consultation to monitor and update the regulations.
Hong Kong Exchanges
On Oct. 31, the government of Hong Kong issued a crypto policy statement and revealed that it was planning to create a “vibrant sector and ecosystem” for crypto.
The new regulations will permit crypto exchanges to apply to licenses to officially operate in the country.
In the statement, it was stated that all exchanges would have to adhere to anti-money laundering, anti-terrorist financing and investor protection laws.
Hong Kong and Crypto
Hong Kong has taken a positive position towards crypto and now accepts it as part of its existing financial system. Eddie Yue (HKMA CEO), referred to crypto’s technological advantages on July 17th.
“The technology and the bushiness innovation behind these developments are likely to be important for our future financial system,”
Hong Kong also categorized NFTs among financial assets in June 2022. Significant success was also achieved by its Central Bank Digital Currency Project (CBDC), which began Oct. 2022.