The Hong Kong authorities mentioned the current alleged $165-million scandal involving crypto alternate JPEX won’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 companies and the treasury, Christopher Hui, mentioned the saga hasn’t affected the federal government’s plan.
“We’ve been asked many times whether JPEX will affect our determination to grow the Web3 market — the answer is a clear ‘no.’”
Hui was referring to the monetary scandal involving the Dubai-based alternate JPEX, the place over 2,500 Hong Kongers allege they have been defrauded, prompting the Securities and Futures Commission (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. Additionally, the SFC arrange a task force with the police to take care of illicit crypto alternate actions and updated its policies on crypto gross sales and necessities.
Hui mentioned, “A lot of things are going on on the regulatory front” — a part of the federal government’s future Web3 regulatory plans see the SFC issuing steerage on tokenized securities and the tokenization of SFC-authorized funding merchandise.
Crypto rules may also be expanded to cowl shopping for and promoting “beyond trades taking place on now-regulated trading platforms,” Hui mentioned.
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A “much sought-after” joint stablecoin session by the Hong Kong Monetary Authority (HKMA) and the Financial Services and Treasury Bureau can also be set to drop quickly, which can take suggestions from a January HKMA discussion paper.
Reports earlier this 12 months mentioned the HKMA had pressured banks to offer companies to crypto firms within the area. Hui mentioned the HKMA will seek the advice of the sector on steerage for banks offering crypto custodial companies.
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Additional reporting by Tom Mitchelhill.
