In a significant development concerning cryptocurrency regulations, the Hong Kong arm of the Swiss bank, SEBA Bank, received preliminary approval from the Hong Kong Securities and Futures Commission (SFC). This would permit the bank to operate virtual asset services, including over-the-counter derivatives, advising on virtual assets, and executing asset management for discretionary accounts in digital assets.
The Asia-Pacific CEO of Hong Kong SEBA, Amy Yu, is immensely optimistic, noting that Hong Kong presents vast opportunities because of the SFC’s regulatory framework for digital assets and the city’s legal system. When China lifts the crypto trading ban, Hong Kong’s strategic geographical location will be advantageous, allowing it to tap into the Chinese market.
However, let’s examine the flip side of this development. One of the difficulties facing SEBA Bank is how cryptocurrency companies struggle to manage and access their digital assets via traditional providers. Moreover, while it appears that Hong Kong aims to be the gateway for Chinese investors when blockchain technology and cryptos flourish, the future of the crypto ban in mainland China remains uncertain.
Yet, the positive trend continues as this past month has seen a surge of regulated crypto activities in Hong Kong. The crypto exchange, HashKey, became the first exchange to receive clearance from the regulators. It began offering retail trading in cryptocurrency, including BTC and ETH. Additionally, OSL, a peer trading platform received SFC’s nod to offer retail trading.
As of August 11, the Hong Kong Virtual Asset Exchange, known as HKVAX, was granted a preliminary approval from the SFC to operate as a cryptocurrency trading platform. HKVAX joins HashKey and OSL, taking the tally of fully licensed exchanges in Hong Kong to three. The continuing trend of acceptance and regulation of cryptocurrency creates a promising atmosphere for the future of the virtual asset industry in Hong Kong.
The action of progressive crypto policies and participation of private wealth and family offices shapes up an ecosystem that has a deep influence on the way Asia and, more specifically, the Hong Kong and Chinese region, perceive and adopt cryptocurrencies. Collaboration and consultation among international regulators can set a global standard, heralding an entirely new era in the finance industry.
Source: Cointelegraph
