Asian financial authorities have begun intensifying regulatory efforts aimed at effectively supervising the crypto industry in their respective jurisdictions.
In particular, Hong Kong and Taiwan have championed these efforts as they seek to subject crypto to greater scrutiny.
Hong Kong to regulate stablecoins and establish a licensing regime
Hong Kong is gearing up to establish a major crypto and web3 hub in the heart of Asia, and its latest proposed policies are proof of that. Christopher Hui, Hong Kong’s financial services secretary, revealed these policies while speaking at the Web3 Investment Summit hosted by Aspen Digital in Hong Kong.
Hui stressed the importance of web3 and cryptocurrencies and reiterated Hong Kong’s desire to establish itself as a major web3 hub in Asia and beyond.
One avenue through which the government wishes to achieve this is by creating a licensing scheme for crypto-focused entities looking to establish themselves in Hong Kong. The regimen will start in June 2023.
This policy comes on the heels of Hong Kong’s policy statement on digital assets that was released last year. The Policy Statement stipulates the Hong Kong government’s plans for the crypto industry.
Hui revealed that, following the release of the statement, more than 80 crypto-focused entities have shown interest in setting up offices in Hong Kong. Some of these include Huobi, Gate.io, and Kaiko.
Furthermore, Hui revealed that the Hong Kong government is also looking to propose a proper regulatory framework for stablecoins. The framework has become necessary due to recent events and will come into effect next year. Reporter Colin Wu highlighted this development.
Taiwan to Appoint a Dedicated Crypto Regulator
In addition to Hong Kong, Taiwan could also be looking to effectively regulate its local cryptocurrency industry. According to information from a Bloomberg reportTaiwan plans to give its main financial regulatory agency, the financial supervision commission (FSC), authority over the local crypto industry.
Once announced and implemented, the FSC will be in charge of regulating the cryptocurrency scene in Taiwan, making it the first official regulator of the Taiwanese cryptocurrency scene. This is likely to bring more clarity to the local industry, which has witnessed impressive growth so far.
Bloomberg said the announcement could be made later this month, citing information received from his sources who asked to remain anonymous.
The sources revealed that the FSC and the government have been in discussions with other government agencies and industry leaders to establish a beneficial regulatory framework for both consumers and crypto-focused entities.
Despite the growing local industry, Taiwan has relaxed its crypto regulations, unlike the stricter measures employed by other Asian regions, such as Singapore, whose central bank has taken proactive steps to oversee the industry.
