The Hong Kong authorities says the current $165 million alleged scandal involving crypto trade JPEX gained’t stifle its Web3 imaginative and prescient for the area.
In a Nov. 2 keynote at Hong Kong Fintech Week, the area’s Secretary for Monetary Providers and the Treasury Christopher Hui mentioned the saga hasn’t affected the federal government’s plan.
“We’ve been requested many instances whether or not JPEX will have an effect on our willpower to develop the Web3 market — the reply is a transparent ‘no.’”
Hui was referring to the monetary scandal involving the Dubai-based trade JPEX, the place 2,500 locals allege they had been allegedly defrauded, prompting the Securities and Futures Fee (SFC) to warn that JPEX was promoting its services locally with out a license.
Hong Kong mentioned it would tighten its crypto rules after JPEX’s alleged actions. Moreover, the SFC arrange a task force with the police to cope with illicit crypto trade actions and updated its policies on crypto gross sales and necessities.
Hui mentioned “plenty of issues are occurring on the regulatory entrance” — a part of the federal government’s future Web3 regulatory framework plan sees the SFC issuing steerage on tokenized securities and the tokenization of SFC-authorized funding merchandise.
Crypto rules will even be expanded to cowl shopping for and promoting “past trades going down on now-regulated buying and selling platforms,” Hui mentioned.
A “a lot wanted” joint session on stablecoins by the Hong Kong Financial Authority (HKMA) and the Monetary Providers and the Treasury Bureau can be set to drop quickly, which is able to take suggestions from a January HKMA discussion paper.
Reviews earlier this yr mentioned the HKMA pressured banks to supply companies to crypto firms within the faith. Hui mentioned the HKMA will seek the advice of the sector on steerage for “banks offering digital asset custodial companies.”