Hong Kong will introduce a licensing system for crypto-fiat exchanges in the short-term, revealed OSL group CFO.
The capital city aims to become the leading hub in Asia for the virtual assets market.
Hong Kong has drawn market attention in the past few months with its progress toward digital asset adoption. Currently, the impending agenda in the nation is the introduction of a licensing system for crypto-fiat exchanges. The CFO of OSL Group, a leading crypto exchange in the Chinese capital, discussed the licensing system and other regulations in the nation.
The CFO, Davin Chunpong Wu, stated that the country holds multiple advantages in virtual assets development. He pointed out Hong Kong is not imposing asset value-added tax for crypto and other digital assets. Comparing Japan and Australia’s tax rates, Davin Wu concluded that Hong Kong’s low taxation will attract global investors.
Secondly, the OSL group CFO described that bank account opening in Hong Kong banks has become simpler ever since the launch of the licensing system for virtual asset platforms.
Moreover, the licensing system has ‘enhanced’ the confidence of global investors in Hong Kong’s crypto and other virtual assets, according to the CFO. This is because the recent launch has given clarity to the regulatory measures of the country.
Additionally, Hong Kong’s virtual asset licensing system also resulted in strict supervision of new bank account openings and identity authentication. The country’s measures to ensure retail investor protection and prevent digital crimes have also attracted international customers.
How Are Hong Kong’s Regulatory Measures Advancing?
In the past few months, Hong Kong has made multiple announcements concerning crypto regulations. The Chinese capital has granted virtual asset trading licenses for some exchanges while declaring some other platforms as potentially to be licensed. Moreover, during that time, top global exchanges withdrew license applications.
Presently, the Hong Kong ETF market includes six ETFs, which showed neutral flows according to Sosovalue data. Following this, Hong Kong is also experimenting with Digital Yuan (e-CYN) and its wallets over the past few months.
In conclusion, the recent announcement of a licensing system for cryptocurrency and fiat conversion exchanges denotes HK’s next step in crypto regulatory measures. The capital is aiming to become the host of Asia’s leading virtual asset market.
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