Hong Kong eases regulation of cryptocurrencies, the US tightens, said the head of the monetary authority

Yue Wai-man, head of the Hong Kong Monetary Authority, said that Hong Kong is gradually moving towards less strict but clearer regulation of virtual assets, while the United States is following a hawkish policy on this issue.

Yue said that at the same time, the US does not have clear regulatory requirements for cryptocurrencies, which creates uncertainty and risks for investors and the market. He cited Singapore and Dubai as examples of the United States, which have clear rules aimed at ensuring the security and transparency of virtual currencies, as well as preventing money laundering and terrorist financing.

Yue noted that Hong Kong has taken into account the international experience of regulating cryptocurrencies, especially after the collapse of the FTX exchange last year. He said that Hong Kong used to have very strict requirements for cryptocurrencies, which essentially prohibited their use. However, Hong Kong has now revised its stance and introduced more flexible but clear rules that allow for innovation and protect consumers.

Recently, the editor-in-chief of the Wublock blog, Loki Zeng, expressed the opinion that the Hong Kong financial Services regulator (SFC) will not pursue cryptocurrency companies and investors, as the US Securities and Exchange Commission (SEC) does, because it understands that cryptocurrencies are an important innovative area that requires a flexible and balanced approach. to regulation.

Starting from June 1, 2023, Hong Kong began to apply new rules for regulating cryptocurrencies, which will apply to all types of virtual assets and all market participants. Under the new rules, the SFC defines a list of crypto assets that will be available for local retail investors to trade, provided that they are serviced by licensed operators. In addition, the SFC will issue licenses for crypto exchanges and crypto funds, as well as monitor compliance with anti-money laundering and terrorist financing regulations. At the same time, the regulator does not prohibit cryptocurrencies or restrict access to them in any way.