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Hong Kong Set to License Digital Asset Exchanges by Year-End

Hong Kong Set to License Digital Asset Exchanges by Year-End

Cryptodnes2024/10/30 02:33
By:Cryptodnes

Hong Kong plans to license digital asset exchanges by the end of 2024 after a five-month review of crypto platforms, as announced by Eric Yip, Executive Director for Intermediaries at the Securities and Futures Commission (SFC), during Fintech Week.

Exchanges will move from provisional to full licenses once they meet SFC regulatory standards and address compliance issues. To ensure ongoing communication, the SFC will establish a panel of representatives from licensed exchanges by early 2025.

In addition, Hong Kong will regulate over-the-counter (OTC) trading desks and custodial services for digital assets.

The Hong Kong Exchanges and Clearing Ltd. will launch a Virtual Asset Index Series, providing new Bitcoin and Ether pricing benchmarks for the Asia-Pacific region.

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Alongside these initiatives, Hong Kong introduced its first AI policy guidelines for finance, aiming to regulate AI’s integration into the sector.

Christopher Hui Ching-yu, Secretary for Financial Services and the Treasury, outlined a strategy to promote AI adoption while managing regulatory challenges. He also announced plans to enhance tax incentives for virtual asset ownership to strengthen Hong Kong’s position in the digital asset market.

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