HONG KONG (BLOOMBEG) – Hong Kong’s de facto central bank plans to have a new regulatory regime for crypto assets ready by July, as the city vies with Singapore to become a key hub for the burgeoning sector while at the same time containing risks.
The Hong Kong Monetary Authority (HKMA) is currently approaching the crypto industry from three dimensions: stablecoins that can be used for payments, investor protection and how authorized institutions deal with with digital assets, according to a statement on its website.
Hong Kong regulators, like their counterparts around the world, are shifting toward increased oversight of an industry marked by extreme volatility and frequent scams. Customers of a Hong Kong cryptocurrency exchange have been unable to withdraw money or tokens since late November, Bloomberg News reported last week.
The HKMA plans to adopt a so-called “same risk, same regulation” approach to crypto, chief executive Eddie Yue said in the statement.