Hong Kong officials expect more cryptocurrency exchanges to receive licenses before the year ends, according to Financial Secretary Paul Chan.
Review of Crypto Platforms Underway
At the Hong Kong FinTech Week, Chan stated that the Securities and Futures Commission (SFC) currently evaluates more platforms for potential licensing. This development suggests that more virtual asset service providers may soon join recent licensees, including OSL Exchange, Hashkey Exchange, and HKVAX.
Chan noted:
“We have issued three licenses so far. Meanwhile, the SFC assesses the legal and regulatory compliance of those deemed service providers. We expect to issue more licenses in the next couple of months.”
Regulatory Developments on the Horizon
Chan also discussed ongoing regulatory initiatives. These include plans to regulate stablecoins and create guidelines for over-the-counter (OTC) trading. He added:
“The HKMA launched a stablecoin issuer sandbox in March. This allows interested parties to conduct testing and facilitate two-way communication on proposed regulatory requirements. We aim to introduce the legislation this year.”
Addressing AI Challenges
Chan emphasized that the Hong Kong government seeks to harness the advantages of artificial intelligence (AI) while tackling potential challenges. These include cybersecurity, data privacy, intellectual property rights protection, and concerns about jobs and ethics.
As a result, the government will issue a policy statement outlining its stance and regulatory approach to the responsible use of AI in financial services.
Exploring New Tax Incentives
In parallel, Hong Kong is considering new tax incentives that may extend existing breaks for traditional funds and family offices to cover crypto investments.
Christopher Hui, Secretary for Financial Services and the Treasury, shared this update during Hong Kong FinTech Week. He indicated that tax concessions for cryptocurrency and other investments could launch by the end of the year.
Hui believes these incentives will encourage investment and foster growth in the sector.
The post Hong Kong to boost crypto industry with new licenses and tax perks appeared first on CryptoSlate.
