- The Hong Kong Monetary Authority has unveiled plans for a new regulatory regime, revealing ties with crypto hub Singapore.
- The de facto central bank would implement the regulation in stablecoins, investor protection and institutional investments in cryptocurrencies.
- Regulators in Hong Kong are wary of volatility and scams in the crypto ecosystem.
Hong Kong's de facto central bank, the Monetary Authority, has revealed plans for introducing new crypto regulation in July of this year. Regulators in Hong Kong are keen to introduce norms for investor protection.
Hong Kong central bank gears up for crypto regulations in 2022
Hong Kong Monetary Authority, the de facto central bank, has new plans for cryptocurrency regulation. The central bank plans to unveil them in July 2022. The monetary authority has decided to approach the crypto industry on three different verticals: stablecoins, investor protection and institutional investments.
Commenting on the upcoming regulation, HKMA was quoted recently:
We place emphasis on issues that may affect the public's confidence in, and the safety, efficiency, and soundness of, our payment systems, and accord appropriate priority to the protection of users.
The central bank is seeking feedback from stakeholders and investors by March 31, 2022. In their recent paper, the bank focuses on the utility of stablecoins and the implication of accepting them for payments.
Regulators are wary of the volatility associated with cryptocurrency prices. Regulators worldwide have shifted towards increased oversight of the crypto industry due to the rising frequency of scams.
Therefore, the central bank of Hong Kong has adopted "same risk, same regulation" in crypto. The bank is keen on protecting users from financial instability as cryptocurrency's connections with traditional institutions increase from a regulatory perspective.
The regulation comes when policymakers around the world are drafting regulations and policies to stop the use of cryptocurrencies for illicit purposes.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: Is BTC sell-off over?
Bitcoin price declined over 6% this week until Friday as the escalation of the conflict between Iran and Israel added fuel to this sell-off. The decline was also supported by falling institutional demand for ETFs, which recorded outflows of more than $280 million this week.
Three reasons why Solana could see a double-digit decline
Solana price appears to have found some support on Friday, recovering slightly from the sharp sell-off registered earlier this week. However, on-chain metrics and technical indicators show increasing chances of a further decline in prices, suggesting that the rebound could be short-lived.
Tron network revenue exceeds Bitcoin, Ethereum and Solana in Q3
The Tron network (TRX) generated the highest revenue in the third quarter since its inception, outperforming leading cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin finds support around $60,000
Bitcoin is hovering around its key support level; a sustained close below this threshold could signal further declines. On the other hand, Ethereum and Ripple have closed below their critical support levels, indicating further downsides.
Bitcoin: Is BTC sell-off over?
Bitcoin price declined over 6% this week until Friday as the escalation of the conflict between Iran and Israel added fuel to this sell-off. The decline was also supported by falling institutional demand for ETFs. BTC bulls seem to be holding strong at a critical support level.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.