- Hong Kong will license extra crypto exchanges by 2024, boosting compliance.
- New AI coverage in finance helps innovation whereas addressing regulatory challenges.
- The proposed tax breaks on digital belongings intention to extend the enchantment of Hong Kong's digital investments.
Hong Kong plans to license digital asset exchanges by the tip of 2024 following a five-month evaluate of crypto platforms. Eric Yip, govt director for intermediaries on the Securities and Futures Fee (SFC), stated this throughout the Fintech Week occasion in Hong Kong.
In line with Yip, digital asset exchanges will transition from preliminary permits to completely licensed standing as soon as they meet the SFC's regulatory requirements. These platforms have addressed SFC suggestions, allotted assets to regulatory pursuits and adopted a sustainable, regulatory compliant working mannequin.
In keeping with these updates, the SFC will set up a panel of representatives from licensed exchanges in early 2025 to help continued communication between the regulator and digital asset platforms.
Hong Kong expands cryptocurrency regulation
Hong Kong additionally plans to control over-the-counter (OTC) buying and selling desks and digital asset custody companies.
Additionally learn: Hong Kong crypto hub plans hit by regulatory challenges
In one other step to help the sector, Hong Kong Exchanges and Clearing Ltd. introduced the upcoming launch of a sequence of digital asset indices. This index will introduce new Bitcoin and Ether value benchmarks adjusted to Asia-Pacific time zones.
Rules of AI in Finance and Proposed Tax Credit for Digital Belongings
Together with its cryptocurrency licensing initiatives, Hong Kong unveiled its first AI coverage tips for the monetary sector, which give a framework for regulatory businesses to form the rising function of AI in finance.
Christopher Hui Ching-yu, Secretary for Monetary Companies and the Ministry of Finance, launched a two-track method geared toward supporting the adoption of AI whereas addressing associated regulatory challenges, contemplating each the potential advantages and dangers of AI.
Hui additionally introduced plans to increase tax advantages for proudly owning digital belongings. He defined that the intention is to construct Hong Kong as a frontrunner within the digital asset market and encourage funding in digital belongings.
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