Hong Kong’s Legislative Council Eyes Clearer Crypto Regulations
Hong Kong and Singapore are competing to establish themselves as Asia's leading crypto hubs. The challenge is to create regulations that ensure investor protection while attracting businesses.
- Hong Kong benefits from a common-law framework, making it one of the world's freest economies.
- Despite its slower regulation process compared to Singapore, Hong Kong's cautious approach allows for clearer patterns in market behavior.
- Duncan Chiu, a member of Hong Kong’s Legislative Council, advocates for clear classifications of digital assets, differentiating between cryptocurrencies, stablecoins, and memecoins.
- Chiu suggests that memecoins should be treated as collectibles rather than financial products.
- Hong Kong prefers to keep crypto oversight under current regulators like the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) instead of creating a separate regulatory body.
- LegCo's priorities include establishing regulations for over-the-counter trading and custodians, while leaving derivatives regulations to the SFC and exchanges.
- Some LegCo members prioritize investor protections due to past failures of crypto platforms, which have impacted many investors.
Economic recovery remains a challenge for Hong Kong amid weak job markets and real estate sector concerns, complicating legislative efforts on crypto regulation.