According to reports, the Hong Kong Monetary Authority (the city-state’s central bank institution) plans to create a new regulatory system for digital assets by July 2017. China’s special administrative region is ready to follow Singapore’s lead and become a crypto hub in that part of the globe.
The Summer of Hong Kong’s Regulatory Framework
Bloomberg recently reported that Hong Kong’s central banking will approach cryptocurrency from three perspectives: protection for local investors and comprehensive rules for authorized institutions about how to deal digital assets.
The Hong Kong Monetary Authority will intensify its scrutiny of stablecoins. According to a press release, the central bank stated that such assets could pose “possible risk regarding monetary stability and financial stability.”
Chief Executive of HKMA, Mr. Eddie Yue, said that the bank was waiting to hear feedback from stakeholders about the proposals. He said that the bank will create a “risk-based regulatory regime for cryptocurrency” that is pragmatic, agile, and pragmatic.
The current “opt-in rule” for local digital asset exchanges in China’s special administrative regions allows them to apply to be supervised. Joshua Chu, a consultant at ONC Lawyers, described the current model as ineffective and suggested that the government reconsider its policy.
The local authorities planned to implement a rule in May 2021 that would allow millionaires to trade with cryptocurrency (roughly 7% of the population of the megapolis). Christopher Hui, Hong Kong’s Treasury Secretary, referred to this decision as a well-thought-out move.
Hong-Kong. Image from: Yahoo
The Problem With Coinsuper
Coinsuper, a cryptocurrency exchange, became a hot topic in the city-state last week as many of its clients complained that they couldn’t withdraw their funds. Some users affected have even reached out to the police for help.
Coinsuper executives could not be reached for further information. The administrator of the Telegram chat for the company stopped responding to questions about failed transactions a month ago.
The trading application and website of Coinsuper remain functional despite all the issues.
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