Hong Kong Officials Announce Major Development for the Cryptocurrency Market to be Announced by the End of the Year

Hong Kong's Securities and Futures Commission (SFC) will announce the licensing framework for cryptocurrency trading platforms before the end of the year, according to CEO Leung Fung-yee.

In his speech on November 29, Leung highlighted the upcoming regulations as part of Hong Kong’s broader efforts to increase transparency and oversight in the burgeoning digital asset space.

Leung also touched on developments in the environmental, social and governance (ESG) sector. He announced that five ESG rating and data product providers have expressed their intention to adopt a newly introduced voluntary code. The rules, which were launched last month, focus on four key areas: governance, systems and controls, conflict of interest management and transparency.

Hong Kong is positioning itself as a hub for crypto and blockchain innovation, and the upcoming licensing framework is expected to set clear standards for market participants. Additionally, as cryptocurrency trading is banned in China, Hong Kong’s stance on this issue is important as it is a Chinese territory.

*This is not investment advice.