Hong Kong’s Securities Regulator Hires More Employees To Oversee The Crypto Sector

Key Points:

• Hong Kong regulators are becoming more vigilant about keeping tabs on the operations of the cryptocurrency sector.
• Previously, according to regulations, only professional investors or retail investors with portfolios worth at least $1 million (HK $8 million) were allowed to use trading platforms regulated in Hong Kong.
• This strategy comprised a $500 million investment fund to encourage widespread adoption in the regional market.

Hong Kong regulators are becoming more vigilant about keeping tabs on the operations of the cryptocurrency sector.

In order to “better supervise” the operations of regional virtual asset (VA) providers, it intends to hire four more employees, according to a Securities and Futures Commission report submitted on February 6. Additionally, by enabling retail investors to trade virtual assets on regulated platforms, the additional regulation will aid in “better assessing the compliance and risk.”

Written by the commission:

“This is in response to an increasing number of operators who have expressed interest in carrying on VA activities such as trading platforms and the management of VA funds.”

This occurs while a new licensing system is being implemented to enable larger retail cryptocurrency investing.

Previously, according to regulations, only professional investors or retail investors with portfolios worth at least $1 million (HK $8 million) were allowed to use trading platforms regulated in Hong Kong.

The new license system was adopted as a change to the Anti-Money Laundering and Counter-Terrorist Financing Bill in December 2022. However, it doesn’t go into force until June 2023, giving local firms and government agencies time to get ready for a fresh round of industry engagement.

Hong Kong has been active in its effort to modernize its crypto sector

This strategy comprised a $500 million investment fund to encourage widespread adoption in the regional market.

Most recently, the Hong Kong Monetary Authority declared in a statement that its most recent legislation forbids algorithmic stablecoins. The agency did, however, state that it plans to create a robust regulatory framework for stablecoins.

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