Hong Kong Authorities Set to Release Guidelines for Crypto Exchange Licenses

Hong Kong is set to become a more promising destination for crypto enthusiasts with the impending release of regulatory guidelines for crypto exchange licenses.

According to a Bloomberg report, Hong Kong’s Securities and Futures Commission (SFC) will release guidelines on its licensing regime for crypto exchanges by the end of May.

SFC CEO Julia Leung revealed the news at an undisclosed event and stated that the regulatory framework had received more than 150 responses during the consultation process. The guidelines are part of the SFC’s efforts to balance investor protection and market development.

The move toward a more crypto-friendly regime in Hong Kong has been met with optimism by the industry. In February, Hong Kong authorities announced plans to lift the ban on retail trading of cryptocurrencies. As a result, all trading platforms were required to be licensed by June 24, or cease operations.

Hong Kong’s positive stance on crypto is in stark contrast to the more stringent approach taken by authorities in Singapore.

Following the collapse of the Terra blockchain and Three Arrows Capital, the hedge fund that had operations in Singapore, the country’s regulators are believed to be taking a tougher line.