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Hong Kong to Introduce New Virtual Asset Policy Framework by End-2025
In a significant move, the government of Hong Kong has announced plans to introduce a new virtual asset policy framework by the end of 2025. This development comes as part of the city’s ongoing efforts to establish itself as a premier hub for digital assets and blockchain innovation.
As per the proposed framework, OSL and HashKey, two major virtual asset trading platforms in Hong Kong, will be allowed to offer selected virtual assets to retail investors, subject to investor appropriateness and risk disclosure requirements. This move is aimed at providing more investment opportunities to individual investors while ensuring their protection from potential risks.
The government has also signaled its intention to regulate over-the-counter (OTC) virtual asset trading platforms, which have gained immense popularity in Asia. These platforms are significant due to the substantial trading volume they facilitate and the associated money laundering and investor protection risks. By considering regulations for OTC trading, Hong Kong is making it clear that no part of the crypto value chain will be left unregulated or unsupervised.
Hong Kong’s efforts to establish a robust regulatory environment have been ongoing since 2020 when the city banned digital asset trading platforms from offering virtual assets to retail investors. However, this new policy framework aims to strike a balance between providing opportunities for investment and ensuring investor protection.
This development is expected to have far-reaching implications for the global crypto industry. It highlights Hong Kong’s commitment to becoming a leading player in the crypto space while also underscoring its dedication to maintaining regulatory oversight and protecting investors.
As we continue to track this story, stay tuned for updates on any further developments.
Source: https://www.cryptoninjas.net/news/hong-kong-to-introduce-new-virtual-asset-policy-framework-by-end-2025/
