NEWSLETTER
The Hong Kong Securities and Future Commission (SFC) has introduced new guidelines for cryptography exchanges that offer rethinking services.
On April 7 advertisementThe SFC announced new guidelines for cryptography exchanges that offer rethinking services and authorized funds locally exposed to digital assets involved in the rethinking. The announcement follows the recent comments of Christina Choi, Executive Director of SFC investment products, which saying During a speech at the Hong Kong Web3 Festival:
“The SFC undertakes to support Hong Kong's web journey.”
In his announcement, the regulator said “recognizes the potential benefits of rethinking to improve the safety of blockchain networks and allow investors to obtain yields.” Consequently, the last guide allows encryption exchanges to provide service offers.
Chen Wu, co -founder and CEO of crypto Exchange based in Hong Kong and SFC, told Cointelegraph that the company appreciates the regulator “that allows licensed platforms to offer rethinking services under clear and responsible guidelines.” She said:
“The SFC announcement indicates that more doors are opening, not only to bet, but for a broader range of web3 products to take shape under a regulated and reliable frame.”
“Hong Kong is positioning not only as a compatible market, but as a real center for the adoption of web3, where users are protected without reducing the speed of progress,” Wu added.
Related: The actions of the Hong Kong investment company arise 93% after buying only 1 bitcoin
New rules for rethinking services
The new rules were communicated by the regulator in its last circular sent to cryptographic exchanges under their jurisdiction. The SFC requires encryption exchanges to obtain written approval before offering rethinking services, retaining control over virtual assets is and not delegating custody to third parties.
Cryptocurrency exchanges dedicated to participation must reveal all relevant risks and details on rates, minimum blocking periods, unnecessary processes, interruption processes and custody agreements for their customers. Finally, suppliers must inform about their rethinking activities to the SFC.
A similar circular was sent For Criptographic fund operators regulated by SFC, the new rules are relevant to funds with more than 10% of their net asset value directly or indirectly in digital assets. Funds can only acquire virtual assets that are also directly available for the local public and depend on the platforms authorized by SFC. The leverage exposure is prohibited.
The funds can participate in the rethinking if it is consistent with the objectives of the fund, while providing a clear dissemination and robust controls. An investor notice may be required and possibly the approval of the shareholders if the implementation of the participation leads to the material strategy or the changes of risk profile.
Hong Kong Bets on Web3
During his recent speech, Choi de SFC acknowledged that the web3 space is still evolving and that “its complete benefits will be developed over time, probably with turns and turns.” She cited the non -fungible tokens speculative industry (nft) as a warning story that justifies caution in the current regulatory approach:
“Therefore, instead of pursuing every new spark, we believe in a pragmatic approach: strengthen the foundations and foster a support ecosystem where web3 can prosper in a sustainable way.”
Related: Hong Kong remains an “open and vibrant market” for crypto, says the financial secretary
The official's comments follow the recent reports that the exchange of cryptocurrencies bybit announced the closure of its nft market as the market is running out of Steam. The decision follows a similar decision of the Major nft Marketplace X2Y2 announced at the end of March.
The non -fungible Token market is seeing a significant recession. The daily negotiation volume nft was more than $ 18 million 364 days before Bybit's ads and stood at $ 5.34 million when the decision to close the platform was made public, a 70%drop.
By arguing why web3 companies should choose Hong Kong as their headquarters, Choi pointed out that Hong Kong range third in the index of global financial centers. In addition, local regulators have established clear guidelines for cryptographic industry companies, and Hong Kong provides easy access to Asian markets.
Global Financial Centers Index Top 10. Source: Long finances
In his final statements, Choi said: “We stop today at the crossroads where traditional finances and digital economy are converging to promote promising results for our financial markets.” She added:
“The progress has been made from zero to one, and its future success would depend a lot on how we promote this convergence, that is, how we go from one to 100”.
His statements make the Hong Kong financial technology sector, which has seen a 250% growth since 2022. The SFC recently introduced a new road map to position the city as a global cryptocurrency center.
The “Aspire” roadmap waits for proof of the local virtual assets ecosystem. It implies 12 initiatives distributed in five wide categories, which include providing access to the market, optimizing compliance and frames and improving the efficiency of blockchain.
Magazine: Korea to lift the corporate cryptography prohibition, be careful with crypto Mining HDS: Asia Express
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