The Securities and Futures Commission of Hong Kong (SFC) has introduced new guidelines for crypto exchanges offering stimulation services.
In an announcement of April 7, the SFC announced new guidelines for Crypto exchanges offering featured services and locally authorized funds exposed to digital assets involved in the markup. The announcement follows recent remarks by Christina Choi, executive director of SFC investment products, who said during a speech at the Hong Kong3 Festival:
“The SFC undertakes to support the Hong Kong web3 course.”
In his announcement, the regulator said that he “recognizes the potential advantages of implementing the improvement in blockchain network security and allowing investors to gain yields”. Therefore, the latest advice allows Crypto exchanges to provide implementation services.
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New rules for the clears
The new rules were communicated by the regulator in its last circular sent to the exchanges of crypto under its jurisdiction. The SFC requires crypto exchanges to obtain written approval before providing implementation services, maintaining the control of marked virtual assets and not delegating custody to third parties.
Cryptocurrency exchanges engaged in the markup must disclose all the relevant risks and details concerning the costs, the minimum locking periods, the lag processes, the failure processes and the childcare arrangements to their customers. Finally, providers must report on their SFC -like activities.
A similar circular has been sent to Cryptographic Fund operators regulated by SFC, the new rules being relevant for funds with more than 10% of their value of the fixed asset invested directly or indirectly in digital assets. Funds can only acquire virtual assets which are also directly available for the local public and rely on the platforms authorized by SFC. Lever effect exposure is prohibited.
Funds can engage in an exploitation if it complies with the fund objectives, while providing clear disclosure and robust controls. An investor notice and possibly the approval of the shareholders may be necessary if the implementation of the implementation leads to a material strategy or to changes in risk profile.
Hong Kong bets on web3
During his recent speech, Choi de SFC recognized that the web3 space is still evolving and that “its total advantages will take place over time, probably with twists and turns”. It cited the speculative industry of non -budgetary tokens (NFT) as an edifying history which justifies caution in the current regulatory approach:
“Consequently, rather than chasing each new spark, we believe in a pragmatic approach – strengthen fundamental principles and promote a support ecosystem where web3 can prosper in a lasting way.”
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The official’s comments follow the recent reports that Bybit Cryptocurrency exchange announced the closure of its NFT market while the market is short of steam. The decision follows a similar decision by Major NFT Marketplace X2Y2 announced at the end of March.
The non -bubble tokens market has a significant slowdown. The daily volume of NFT exchanges was more than $ 18 million 364 days ago before Bybit announcements and amounted to $ 5.34 million when the decision to close the platform was made public – a fall of 70%.
By asserting why web 3 companies should choose Hong Kong as head office, Choi stressed that Hong Kong ranks third in the world index of financial centers. In addition, local regulators have established clear directives for companies in the cryptographic industry, and Hong Kong offers easy access to Asian markets.
Global financial centers index top 10. Source: Finance
In its closing statements, Choi said: “Today we are at the crossroads where traditional finances and the converging digital economy to generate promising results for our financial markets.” She added:
“Zero breakthrough has been made, and its future success would depend a lot on how we feed this convergence, that is to say how we go from one to 100.”
Its statements echo the Hong Kong financial technology sector, which has grown growth of 250% since 2022. The SFC has recently introduced a new roadmap to position the city as a global cryptocurial center.
The “Aspire” roadmap hopes to the test of the ecosystem of local virtual assets. These are 12 initiatives distributed in five main categories, including market access, compliance optimization and executives and improving the efficiency of blockchain.
Review: Korea to raise the ban on corporate cryptography, beware of crypto mining hds: Asia Express
