HashKey CEO Criticizes Hong Kong Crypto Regulations ๐ซ
HashKey CEO Livio Weng has criticized the recent regulations around crypto trading in Hong Kong. He expressed concerns that these regulations may impede access for international clients interested in entering the Hong Kong market.
Impact of Regulatory Framework in Hong Kong ๐ญ๐ฐ
- Hong Kong’s regulatory framework requires all crypto exchanges operating within the city to submit applications for regulatory approval by February this year.
- 24 companies, including major players like Bybit, OKX, and Crypto.com, have complied with this requirement.
- Exchanges that failed to submit license applications are mandated to discontinue services by May.
China’s Influence on Hong Kong’s Crypto Future ๐จ๐ณ
- HashKey currently holds one of the two licenses granted for digital asset exchanges in Hong Kong.
- The recent sale of nearly 30% of OSL’s stake to BGX, reportedly an unlicensed cryptocurrency group with ties to China, has raised doubts about the sustainability of operating under Hong Kong’s regulatory framework.
Challenges for Global Investors ๐
- The current regulations in Hong Kong restrict exchange clientele to individuals who pass know-your-customer (KYC) checks and have funds within local or approved overseas bank accounts.
- Weng argues that these regulations need revision to attract a broader spectrum of international investors, as the market may struggle to sustain more than a few licensed exchanges without modifications.
Hot Take: Concerns and Opportunities in Hong Kong’s Crypto Sector ๐ก
In conclusion, while Hong Kong’s regulatory framework poses challenges for international investors in the crypto sector, there are opportunities for growth and adaptation with the right revisions and considerations for a more inclusive market.
Sources:
1. The Financial Times – https://www.ft.com/content/41651975-4eca-4d6f-8ca2-d17aaf175a2f
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