Hong Kong Monetary Authority[शहर-राज्य का केंद्रीय बैंकिंग संस्थान]It reportedly intends to establish a new regulatory regime for digital assets by July this year. The Special Administrative Region of China is set to follow the path of Singapore and become a cryptocurrency hub for that part of the world.
Hong Kong’s regulatory framework coming this summer
According to recent coverage by Bloomberg, Hong Kong’s central bank will approach the cryptocurrency industry in three aspects: protection for local investors, broader regulations for institutions authorized to deal with digital assets, and a special focus on stablecoins.
Hong Kong Monetary Authority[HKMA]The stablecoin is set to come under more scrutiny. In a recent press release, the institution stated that such assets present “potential risks with respect to monetary and financial stability”. The central bank noted that it is closely monitoring the development of these assets and is looking to “actively share” its views with the wider society.
Mr. Eddie Yu – Chief Executive of HKMA – revealed that the bank is awaiting feedback from stakeholders on the recent proposals. He added that this would create a “risk-based, pragmatic and agile regulatory regime” for the cryptocurrency industry.
Currently, the Special Administrative Region of China enforces a so-called “opt-in” rule for local digital asset exchanges, which means they can apply for supervision. Not long ago, Joshua Chu, an advisor to the ONC lawyers, called this model ineffective, and that the government should consider changing its policy.
In May 2021, local authorities intended to introduce a rule that would only allow millionaires to trade with cryptocurrencies (about 7% of the total population of the metropolis). At the time, Christopher Hui – Hong Kong’s Treasury Secretary – called the initiative a well-intentioned decision.
Problem with Coinsuper
Last week, cryptocurrency exchange Coinsuper became one of the hottest topics in the city-state after dozens of its customers complained they could not withdraw funds. Some affected users have also approached the police for a solution.
Officials at Coinsuper could not be reached for further details on the matter. Also, the administrator of the company’s Telegram chat stopped answering questions about failed transactions a month ago.
Despite all these issues, the trading application and the website of Coinsuper are still functioning.
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