Hong Kong SCMP Editorial Called For More Regulation On Crypto

Hong Kong is currently a relatively open area about cryptocurrencies, however, recent events have called for lawmakers to have clearer policies and regulations on this investment sector.

According to the Hong Kong SCMP Editorial, the region was hit when the world’s top cryptocurrency exchanges collapsed.

The essay mentions FTX, the empire that has brought about the most devastating destruction of the crypto market since the Luna disaster earlier this year and its consequences.

In addition, Atom Asset Exchange (AAX), a Hong Kong-based cryptocurrency exchange founded only four years ago, has suspended all withdrawals since the middle of last month. Its management team is cut off, and the extent of the losses is unknown.

The essay also states that Financial Secretary Paul Chan Mo-po declared that virtual assets and cryptocurrencies are “unstoppable.” As a result, the city is “eager to catch up with Singapore regarding financial innovations.”

After damage from Lion City’s state investment arm Temasek, something like “regulators must not kill innovations or stifle the city’s ambition to become a virtual asset hub.”

Where the introduction of clear regulations on “virtual assets” is essential to make it happen, “there must be clear definitions to distinguish the digitalized forms of stocks, bonds, exchange-traded funds and other financial instruments which are already regulated, from newfangled blockchain-based instruments such as non-fungible tokens (NFTs), Bitcoin and other digital tokens currently affected by regulators.”

Currently, the regulations on cryptocurrencies like MiCA are quite strict, but countries like Singapore or Hong Kong are neglecting this regard.

The current AAX exchange has no further information after the executives remained silent.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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