The Hong Kong Securities & Futures Professionals Association (HKSFPA) has proposed that crypto companies in the city establish a self-regulatory committee and mutually monitor each other’s compliance.
According to a recommendation letter from the HKSFPA on April 22, the association stated that the Hong Kong financial market industry is overly focused on supervision, lacking an organization to oversee the industry’s overall development.
To maintain competitiveness in the global securities market and solidify Hong Kong’s status as an international financial center, the HKSFPA suggested that the Securities & Futures Commission (SFC), the city’s regulator, establish independent bodies with “statutory self-regulating” powers. These bodies would delegate licensing authority to industry participants.
In a similar recommendation letter last August, the HKSFPA emphasized the importance of balanced supervision and development to prevent excessive regulatory control over the Hong Kong virtual assets industry.
However, it should be noted that self-regulation does not always come without risk. Lithuania, for instance, plans to tighten its crypto regulations from 2025 due to compliance failures and embezzlement. The country has issued licenses to over 580 crypto firms but currently lacks sufficient oversight from its licensees.
In contrast, Hong Kong regulators have shown more leniency towards virtual asset companies compared to their international counterparts. On April 15, the SFC approved spot Bitcoin and Ether exchange-traded funds (ETFs) for several issuers, including Harvest Fund Management, Bosera Asset Management, and China Asset Management (ChinaAMC). Last year, official virtual asset licenses were granted to crypto exchanges Hashkey and OSL.
Meanwhile, the U.S. Securities and Exchange Commission has yet to approve a spot Ether ETF or provide specific licenses for crypto exchanges to register. The prospects for approval in the near future appear unfavorable.
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