Crypto oversight won't hurt market: Chan

Themis Qi

The robust regulation of virtual assets is not against the market development, said Financial Secretary Paul Chan Mo-po, defending the SAR's new licensing regime after the fallout of JPEX earlier this year.

While the collapsed unlicensed cryptocurrency exchange JPEX is under investigation, Chan reiterated the government remains committed to regulating the crypto assets under the "same activity, same risks, same regulation" principle, when addressing a forum yesterday.

Speaking at the same event, Hong Kong Monetary Authority chief executive Eddie Yue Wai-man said the regulation on stablecoins will help in financial stability and sustainable development.

Yue added that the city's de-facto central bank is working on the industry feedback collected from the consultation that proposed to supervise business activities related to stablecoins.

Yue also said that China's authorities assume that investments into mainland markets via Hong Kong are regulated, which indicates the remarkable trust of regulators in Beijing.

Securities and Futures Commission chief executive Julia Leung Fung-yee said Hong Kong welcomed trials on the tokenization of assets, but the risks need to be acknowledged. The SFC will release relevant guidance shortly, she added.

Also yesterday, the SFC launched a fresh consultation on implementing an uncertificated securities market in Hong Kong, which will allow investors to hold securities in their own names without paper documents.

The HKMA called for virtual banks to enhance cyber security with 10 measures, including additional identity verification, to be fully implemented in March next year.

In other news, Hong Kong Exchanges and Clearing (0388) agreed to work with the China Emissions Exchange Shenzhen in accelerating the carbon market ecosystem in the SAR and across the Greater Bay Area.