Hong Kong Monetary Authority Chief: Will Strictly Regulate the Cryptocurrency Industry to Prevent a Repeat of the FTX Bankruptcy

ChainCatcher news, Hong Kong Monetary Authority Chief Executive Eddie Yue stated that cryptocurrency companies will be allowed to create ecosystems in Hong Kong and develop into a digital asset hub, but Hong Kong will continue to maintain a strict regulatory regime for the cryptocurrency industry.

He mentioned that Hong Kong's regulation of cryptocurrencies has been very strict in recent years, and the current level of regulation has been lowered to a "reasonable and sustainable level," but it will still not allow any incidents similar to FTX to happen in Hong Kong again, to avoid a repeat of last year's market crash caused by FTX's bankruptcy.

In addition, while speaking at the Bloomberg Asia Wealth Summit, he stated that banks are developing further guidelines for clients in the cryptocurrency sector, and the Securities and Futures Commission will soon release its review results on the scope of retail investor participation.

The licensing system for Virtual Asset Service Providers (VASP) in Hong Kong will officially take effect in June this year, and it plans to allow retail investors to trade mainstream tokens such as Bitcoin and Ethereum, to facilitate Hong Kong's shift towards the digital asset industry after talent loss. (source link)