FTX fallout motivates Hong Kong watchdog to draft new rules

The Hong Kong Securities and Regulatory Fee plans to draft new regulatory provisions to implement underneath its new crypto regulation system within the wake of FTX’s collapse, in response to native media reports.

The Fee reportedly argued that the FTX fallout had affected different digital tokens and your entire crypto trade. The incident demonstrates the potential catastrophic results of utilizing a buying and selling platform that isn’t absolutely regulated.

In accordance with the Fee, the query is whether or not a regulatory framework can assure monetary security for traders.

The Fee additionally talked about launching a public session to observe the trade and replace rules accordingly.

Exchanges in Hong Kong

On Oct. 31, the federal government of Hong Kong issued a crypto coverage assertion and revealed that it was planning to create a “vibrant sector and ecosystem” for crypto.

The brand new rules would permit crypto exchanges to use for licenses to function formally within the nation.

The assertion added that it might be necessary for all exchanges to adjust to anti-money laundering, counter-terrorist financing, and investor safety legal guidelines.

Hong Kong and crypto

Hong Kong has publicly adopted a optimistic stance towards crypto and accepts it as part of the prevailing monetary system. On July 17, Hong Kong Financial Authority (HKMA) CEO, Eddie Yue, referred to the technological benefits of crypto and stated:

“The expertise and the bushiness innovation behind these developments are prone to be vital for our future monetary system,”

Hong Kong additionally labeled NFTs as monetary belongings in June 2022 and achieved vital success from its Central Financial institution Digital Forex (CBDC) challenge mBridge on Oct. 2022.

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