The Hong Kong government officially announced the (Stablecoin Regulation Draft) and plans to submit it to the Legislative Council for the first review on December 18.
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Hong Kong's attitude towards virtual currency showed a clear trend of regulatory strengthening and compliance in December 2024, specifically reflected in the following aspects:
1. Strengthening Regulatory Framework
1. The Announcement and Review of the (Stablecoin Regulation Draft)
– On December 6, 2024, the Hong Kong government officially announced the (Stablecoin Regulation Draft) and plans to submit it to the Legislative Council for the first review on December 18.
– This legislation aims to fill the regulatory gap for fiat-pegged stablecoins (FRS) and directly address core issues such as financial stability risks, user protection needs, and regulatory clarity.
2. Regulation of Virtual Asset Trading Platforms
– Hong Kong has implemented a new licensing system for virtual asset trading platforms, requiring all central virtual asset trading platforms operating in Hong Kong to apply for a license from the Securities and Futures Commission (SFC).
– ZhongAn Bank, as the first bank in Asia to provide virtual currency trading services to retail users, is also under the supervision of the Hong Kong Monetary Authority (HKMA) and the SFC.
2. Promoting Compliance and Innovation Coexistence
1. Encouraging Technological Innovation and Ecological Construction
– While strengthening regulation, Hong Kong is also actively promoting technological innovation and ecological construction related to virtual assets to attract more technical talent and capital.
2. Policy Declaration and Public Consultation
– The Hong Kong government issued the (Policy Declaration on the Development of Virtual Assets in Hong Kong), clarifying the government's policy position and guidelines for the development of the virtual asset industry and ecosystem.
– The government has also conducted multiple public consultations, including consultations on the licensing system for virtual asset service providers and consultations on intermediaries engaging in virtual asset-related activities.
3. Market Response and Investor Protection
1. Market Volatility and Investor Education
– The Hong Kong market is sensitive to price fluctuations of virtual currencies such as Bitcoin, and investors need to treat investment decisions with caution and fully understand the relevant risks.
– The Hong Kong government emphasized the importance of investor education to ensure that investors understand the risks of virtual assets and make informed investment choices.
2. Combating Illegal Activities and Investor Protection
– The Hong Kong Securities and Futures Commission and the Monetary Authority have made regulations for intermediary platforms providing virtual asset trading services to safeguard investors' asset security.
– In response to the incident involving the virtual asset trading platform JPEX suspected of illegal operations, the Hong Kong police launched arrest operations and emphasized the importance of establishing effective systems to protect investors.
In summary, Hong Kong's attitude towards virtual currency showed a clear trend of regulatory strengthening and compliance in December 2024. The government clarified the regulatory framework and development direction of the virtual asset industry through the formulation of relevant laws and policy declarations. At the same time, Hong Kong is also actively promoting technological innovation and ecological construction to attract more technical talent and capital. However, investors need to treat investment decisions with caution and fully understand the relevant risks. The government will continue to strengthen investor education and combat illegal activities to protect investors' legitimate rights and interests.
