Hong Kong to Propose Statutory Licensing Regime for VASPs: CE John Lee

blockchain.news:

Chief Executive of HKSAR John Lee delivered his first policy address Wednesday, indicating that the administration has proposed a bill to establish a statutory licensing regime for virtual asset service providers.

In his first policy address to the Legislative Council, the leader of Hong Kong, who took over the authority in July as the successor of Carrie Lam, expressed his stance towards virtual assets regulation and the outlook as well as the development in terms of digital Hong Kong dollars, according to the latest published policy address.

Speaking of virtual assets among various issues, Lee said:

“On virtual assets, the Government has introduced a bill to propose establishing a statutory licensing regime for virtual asset service providers. The Hong Kong Monetary Authority (HKMA) is examining market feedback on the regulation of stablecoins and will ensure that the regulatory regime is in line with both the international regulatory recommendations and the local context.” 

Currently, only one licensed virtual asset trading platform, OSL, is listed on the Securities and Futures Commission (SFC) as of August 2022; while another private company, Hashkey Group, secured Approval-in-Principle in April to operate a licensed virtual asset trading platform from the SFC in Hong Kong, which received type 9 asset management license by SFC of Hong Kong in September, enabling them to manage a portfolio of virtual assets fully.

Previously, Lee's deputy, Financial Secretary Paul Chan, disclosedto address the policy statement related to digital assets during the upcoming Fintech Week by the end of October.

Hong Kong remains struggling for the recovery and revival of the economy amid the pandemic of COVID-19, facing strong competitors