Hong Kong regulators are taking their investigative efforts seriously after including the crypto sector as a core industry. Regarding this, regulators in the country are now enlisting crypto specialists on their teams to help with their investigations. According to a statement published by the Securities and Futures Commission of Hong Kong, there are plans to enlist more staff to help with supervision in the sector.
Hong Kong regulators want proper supervision
According to the document, the enlisted parties will help regular officials anytime there is a crypto-related case to solve. In addition, the extra help will also provide a way for Hong Kong regulators to understand how much compliance and risks users are taking on by overseeing their activities across the several registered regulatory platforms.
The commission noted that this new approach was decided after it received several requests from entities to launch their crypto-related businesses. The body said there had been an uptick in firms showing interest in starting trading exchanges and finding management companies. This new update is also coming off the back of a renewed effort by the current government to enable people to access and invest in digital assets and related products on a retail scale.
Hong Kong ready for full crypto adoption
Public participation in crypto-related products was banned by Hong Kong regulators, with exchanges only allowed to provide services to high-grade investors. In another case, an investor could be allowed to trade crypto provided they could boast a plethora of portfolios of up to $1 million. The new law was announced in December 2022, replacing the country’s robust AML and CTL rules. However, Hong Kong regulators say it will officially start in the second half of this year after providing space for firms and traders to familiarize themselves with the laws.
Hong Kong has been hardworking in its crypto space over the last few months. The country has been working very hard to deliver on its promise to ensure that the space is ready for Web3 adoption. One of the triggers of this plan is the $500 million investment fund created to help push adoption across the country. In addition, the government wants to rid itself of bad assets after it announced that algorithmic stablecoins would not have a place when the new regulation begins. However, Hong Kong said it is still looking into the likelihood of creating a special rule for stablecoins.