Hong Kong’s financial regulator, the Securities and Futures Commission (SFC), aims to approve additional licenses for digital asset exchanges by the end of 2024 after a detailed five-month evaluation process.
What Happened: The announcement, made by Eric Yip, executive director of intermediaries at SFC, at a FinTech Week event solidifies the company’s position as a prominent hub for digital assets after recent political turmoil. This reflects Hong Kong’s efforts to
“Applicants and their administrators have largely adopted our feedback and have shown a willingness to invest resources in line with regulators’ expectations,” Yip said, according to a Bloomberg report.
The SFC’s inspection process, which began with provisional permits in June, revealed operational issues with some platforms.
These companies must take corrective action and complete a third-party review by the SFC before a restricted license is granted. The final list of authorized exchanges is expected to be announced by the end of the year.
To support ongoing regulatory efforts, the SFC will establish an advisory board of representatives from licensed exchanges early next year to strengthen cooperation.
Additionally, regulators are designing a more comprehensive framework to oversee crypto over-the-counter (OTC) trading desks and custodial services, Yip explained.
In a parallel move to strengthen Hong Kong’s role in the digital finance sector, the Hong Kong Exchange and Clearing Corporation will provide a reliable benchmark for Bitcoin BTC/USD and Ethereum ETH/USD prices for trading in the Asia-Pacific region. We have introduced a virtual asset index series with the aim of For hours.
Also read: Is Bitcoin “Trump Trading” still valid? It’s complicated, but keep an eye on these two data points
Why it matters: This initiative aligns with the City’s broader ambitions to establish itself as a leader in the region’s digital asset market.
As Hong Kong seeks to deepen its involvement in the digital asset ecosystem, a prominent suggestion from financial and academic leaders is that the government should consider issuing a state-backed stablecoin called HKDG. It suggests that.
Led by renowned Web3 expert and Vice-Chancellor of the University of Hong Kong, Wang Yang, along with investors and blockchain advocates, the proposal argues that the HKDG stablecoin, tied to Hong Kong’s foreign exchange reserves, will increase financial efficiency and inclusiveness. I am doing it.
The proposal cites the success of Singapore’s XSGD stablecoin and argues that HKDG’s official stablecoin is a competitive alternative to existing private stablecoins such as Tether USDT/USD and USD Coin USDC/USD. It suggests that it will happen.
By leveraging foreign exchange reserves amounting to approximately $430 billion, HKDG has the potential to offer greater reliability and stability compared to private stablecoins with a market capitalization of approximately $110 billion.
The authors argue that this approach will help Hong Kong remain competitive in the global digital financial market, while also providing additional liquidity for government-backed initiatives.
HKDG’s potential will be the focus of discussion at the Benzinga Future of Digital Assets event on November 19th.
Read next:
Image: Shutterstock
Market news and data powered by Benzinga API
© 2024 Benzinga.com. Benzinga does not provide investment advice. Unauthorized reproduction is prohibited.
