Asian financial authorities have begun stepping up on regulatory efforts aimed at effectively overseeing the crypto industry in their respective jurisdictions.
Notably, Hong Kong and Taiwan have championed these efforts, as they look to bring crypto under greater scrutiny.
Hong Kong to regulate stablecoins, set up licensing regime
Hong Kong is gearing up to establish a major crypto and web3 hub in the heart of Asia, and its latest proposed policies are testament to this. Christopher Hui, the Hong Kong secretary for financial services, disclosed these policies while speaking at the web3 Investment Summit hosted by Aspen Digital in Hong Kong.
Hui emphasized the significance of web3 and cryptocurrencies and reiterated Hong Kong’s desire to set itself as a major web3 hub in Asia and beyond.
One of the avenues through which the government wishes to achieve this is by setting up a licensing scheme for crypto-focused entities looking to set up shop in Hong Kong. The regime will begin in June 2023.
This policy comes on the heels of Hong Kong’s policy statement on digital assets which was released last year. The Policy Statement stipulates the Hong Kong government’s plans for the crypto industry.
Hui revealed that, following the release of the statement, over 80 crypto-focused entities have indicated interest in establishing offices in Hong Kong. Some of these include Huobi, Gate.io and Kaiko.
In addition, Hui disclosed that the Hong Kong government is also looking to propose a proper regulatory framework for stablecoins. The framework has become necessary given recent developments, and will come into effect next year. Reporter Colin Wu highlighted this development.
Taiwan to appoint dedicated crypto regulator
Besides Hong Kong, Taiwan might also be looking to effectively regulate its local cryptocurrency industry. Per information from a Bloomberg report, Taiwan plans to give its top financial regulatory agency, the finance supervisory commission (FSC), authority over the local crypto industry.
Once announced and implemented, the FSC will be in charge of regulating the crypto scene in Taiwan, making it the first-ever official regulator for the Taiwanese cryptocurrency scene. This is likely to bring more clarity to the local industry which has so far witnessed an impressive growth.
Bloomberg noted that the announcement could come up by the end of this month, citing intel received from its sources who asked to be anonymous.
The sources revealed that the FSC and the government have been in talks with other government agencies and industry leaders to set up a regulatory framework beneficial for both consumers and crypto-focused entities.
Despite the growing local industry, Taiwan has been more relaxed regarding crypto regulations, as opposed to the more stringent measures employed by other Asian regions such as Singapore whose central bank has taken proactive steps in overseeing the industry.