Eddie Yue, Hong Kong’s chief executive officer of the Hong Kong Monetary Authority (HKMA), recently gave a speech outlining the new licensing process that would apply to crypto firms in Hong Kong.
According to Yue, any endeavor that resembles conventional forms of money would be subject to stringent oversight. This encompasses various things, including trading platforms for cryptocurrencies and stablecoins.
On the other hand, Yue underlined that the sector could still evolve and innovate even with this legal framework. This ensures that Hong Kong will continue to be a fertile ground for developing an environment conducive to the growth and success of cryptocurrencies.
Yue: Free to leave if unable to comply
Yue further said that any participant in the sector who feels that the laws are too stringent for their taste is free to leave and find work in another field if they want.
The views demonstrate how important it is to balance safeguarding investors’ interests and fostering innovation within the sector. In addition, it acts as a cautionary note to businesses that could attempt to evade rules or become involved in fraudulent operations.
The crypto business in the past has been primarily uncontrolled; however, the new licensing framework in Hong Kong intends to change that by bringing more transparency and regulation to the sector.
Hong Kong’s government is aware of the potential advantages of cryptocurrencies and other similar technologies, but it is also aware of the associated hazards. As a result, the new legislation aims to provide a secure and reliable setting for the business to operate in.
The U.S. government is also coming in to the crypto space with countless regulatory proposals, as the nation seeks better regulations. However, not all moves by U.S. watchdogs have sat well with the crypto community, notably, Coinbase is standing up to some of these proposals.