Hong Kong boosts Crypto hub ambitions with new policy statement

Hong Kong reaffirms its goal of becoming a major global centre for virtual assets in its second policy statement, which is expected soon. According to Treasury Secretary Paul Chang Mopo, the statement combines traditional financial strengths with new virtual asset technologies to prioritize them. The aim is to improve economic safety and flexibility.

The move follows Hong Kong’s first virtual asset policy statement in October 2022. That first statement set the stage for the city’s regulatory approach and the ambitions of the crypto sector.

Local media reports show that future policy declarations encourage both domestic and international companies to explore fresh uses for virtual asset technologies. Local governments are clearly working on developing a vibrant, well-regulated digital finance scene.

Related: UTXO and partners announce the acquisition of Hong Kong listed companies

Q2 Policy Statement

Sources suggest that a new policy will be released in the second quarter of this year. The focus will be on balancing industry growth and regulatory oversight. In contrast to the unregulated approach from two and a half years ago, this next declaration aims to build market trust through a solid regulatory framework.

“There is confidence in regulations and there is room for development with confidence,” a government source pointed out, highlighting the importance of a structured approach to fostering growth in the virtual asset sector.

Hong Kong will also begin a new consultation process this year. This evaluates your in-store (OTC) virtual asset transactions and custodian services licenses.

Stablecoin Regulation and SFC Aspire Roadmap

Stab coin restrictions are also underway. The government introduced the framework at the end of last year. Once these rules are approved, the Hong Kong Monetary Authority (HKMA) plans to speed up the licenses for Stablecoin issuers.

In other news, Hong Kong’s Securities and Futures Commission (SFC) has released a roadmap called “Aspire.” The initiative is designed to strengthen the city’s position as a global cryptocurrency hub.

Related: Hong Kong Eye Bitcoin Reserve, Stablecoin Push Web3 Drive

Announced on February 19, Aspire tackles issues such as fragmented liquidity, regulatory arbitrages and market volatility. It lays a five-pillar strategy along with 12 key initiatives, including access, protection, products, infrastructure and relationships. They aim to improve blockchain efficiency, streamline compliance and increase market access.