Hong Kong will introduce a extra detailed digital asset coverage framework by the top of the yr, as town continues to refine its method to Web3 and associated applied sciences, Monetary Secretary Paul Chan stated on Monday.
Talking on the Hong Kong Web3 Competition, Chan stated the forthcoming coverage assertion will broaden on the federal government’s earlier commitments, with a deal with utilizing Web3 to reinforce conventional monetary companies, help the actual financial system and strengthen the applying of digital asset applied sciences.
“Later this yr, we are going to unveil a second coverage assertion on the event of digital property,” he stated, including that the purpose is to foster a regulatory surroundings that helps innovation whereas safeguarding market integrity.
The Hong Kong authorities stated that stablecoin laws might be handed quickly, and related compliance licenses might be established for over-the-counter transactions and custody companies, licensed spot ETFs might be allowed to offer stake companies, and new legislative…
— Wu Blockchain (@WuBlockchain) April 7, 2025
Coverage Rollout Consists of Buying and selling Licences and Plans for Stablecoin Oversight
The transfer builds on town’s first digital asset coverage, launched in Oct. 2022, which set out a high-level framework to help the event of the sector.
Since then, Hong Kong has rolled out a licensing regime for digital asset buying and selling platforms, with 10 platforms licensed by the Securities and Futures Fee thus far.
Different efforts embrace authorising digital asset spot exchange-traded funds (ETFs), with Hong Kong rising as the most important VA ETF market within the Asia-Pacific area. The federal government additionally plans to introduce laws to manage stablecoins, with the licensing regime anticipated to take impact inside the yr.
OTC and Custody Guidelines Beneath Assessment as Metropolis Deepens Web3 Supervision
Authorities are at present conducting consultations on extending regulation to cowl over-the-counter digital asset buying and selling and custodial companies, additional increasing town’s oversight of the sector.
Chan reiterated that the federal government’s method shouldn’t be solely regulatory. “We help a multi-stakeholder method the place governments, regulators and market gamers throughout completely different territories and areas come collectively to drive ahead the sustainable growth of Web3,” he stated.
One instance is the Hong Kong Financial Authority’s Challenge Ensemble, a sandbox that enables monetary establishments to experiment with tokenized real-world property below regulatory supervision.
Hong Kong has taken a extra open stance in the direction of Web3 than some neighbouring jurisdictions, positioning itself as a regional hub for blockchain-related exercise whereas sustaining a deal with monetary stability.
“The lesson now we have learnt,” he stated, “is that we have to put it below a balanced regulatory framework in order to allow the sector to develop in a accountable and sustainable method.”
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