Hong Kong government to introduce virtual asset service provider licensing system

03/17/2023 04:38 • Tech Trends • 98 views

According to reports, on March 17th, when delivering a video speech at the 2WEB3 FEST Hong Kong 2023 event, the Financial Secretary of the Hong Kong Special Administrative Region Government, Chen Maobo, stated that in the past few years, the virtual asset industry in Hong Kong is starting to develop steadily. Under the principle of “same activities, same risks, and same supervision”, Hong Kong will introduce a virtual asset service provider licensing system in June this year. “We believe that by establishing an appropriate regulatory licensing system to eliminate the black sheep in the industry, it is beneficial to enhance the overall image of the industry and promote the healthy, orderly and responsible development of the virtual asset industry.” Chen Maobo said. (Interface News)

Chen Maobo: Hong Kong will introduce a virtual asset service provider licensing system in June

Analysis based on this information:

The Financial Secretary of the Hong Kong Special Administrative Region Government, Chen Maobo, recently announced during the 2WEB3 FEST Hong Kong 2023 event that a virtual asset service provider licensing system would be introduced in Hong Kong in June this year. The move comes as the virtual asset industry in Hong Kong continues to develop steadily in recent years. According to reports, the regulatory licensing system will seek to eliminate the “black sheep” in the industry and promote healthy, orderly, and responsible development in the virtual asset industry.

Maobo’s statement reflects a growing concern of the challenges involved in regulating the virtual asset industry. The lack of regulatory oversight has led to the proliferation of unsavory activities, such as money laundering, terrorist financing, and fraud. In the absence of clear regulations, virtual asset service providers have been taking advantage of the loopholes to exploit unsuspecting investors and end-users.

The introduction of a licensing system is, therefore, a welcome development for the industry. The regulatory licensing system will ensure that only legitimate and trustworthy virtual asset service providers operate in Hong Kong. The system will also help to build trust and confidence among investors and users, as they will be assured of the quality of services and the integrity of the virtual asset providers.

However, the success of the regulatory licensing system will depend on its effectiveness in eliminating the bad actors. The Hong Kong government must ensure that it enforces the licensing system diligently and sets a high standard for virtual asset service providers. This will help to create a level playing field and ensure that virtual asset providers compete based on fair and ethical practices.

In conclusion, the move by the Hong Kong government to introduce a virtual asset service provider licensing system is a step in the right direction for the virtual asset industry. The move will promote responsible and healthy development, eliminate bad actors, and build trust and confidence among investors and users. The virtual asset industry is set to flourish with the introduction of the regulatory licensing system, and the Hong Kong government must ensure that it regulates the industry effectively to ensure its continued development and success.

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Hong Kong government to introduce virtual asset service provider licensing system

Chen Maobo: Hong Kong will introduce a virtual asset service provider licensing system in June

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