Hong Kong changes position and approach on virtual assets; director of OKX reacts | New
VICTORIA, Seychelles, Oct. 31, 2022 (GLOBE NEWSWIRE) — The Hong Kong government today released a statement titled “Hong Kong Virtual Asset Development Policy Statement” which sets out its position and approach to developing a “vibrant virtual asset (“VA”) industry and ecosystem in Hong Kong.”
The statement said the Hong Kong government and financial regulators are working to create an environment conducive to the sustainable and responsible development of Hong Kong’s AV industry. It also signals that the government is stepping up its preparatory work for a new licensing regime and preparing to allow retail investment in virtual assets under certain conditions. He points out that the government is exploring a number of pilot projects to test the technological benefits brought by the virtual asset industry.
Following the announcement, OKX Chief Financial Markets Officer Lennix Lai offered the following information on what the changes are likely to mean for Hong Kong, the industry and the world’s second-largest crypto exchange by trading volume:
Regarding Hong Kong’s promise as a virtual asset hub, Lai said:
“Factors that determine which markets will become the crypto hubs of the future include the jurisdiction’s rule of law, financial market infrastructure, capital availability and talent pool. Hong Kong offers almost unparalleled potential in many of these areas and has always emphasized investor protection, which is of the utmost importance.
“Approaches taken in regions like the UAE and Singapore have shown that it is possible to balance investor protection with the commercial needs and practical realities of the crypto market.”
On what the statement means for OKX and the industry, Lai said:
“It is expected that many players in the crypto industry, ourselves included, will seek to refocus their efforts on the Hong Kong market and increase their presence at a regional hub level, or even global.”
“This signal from the Hong Kong government is very important and gives us a better idea of the regulatory direction it has in mind for the industry. As the government reconsiders its position and potentially opens the market to some retailer participation, this increasingly open attitude has given us enough confidence to make the Hong Kong market a priority. For the crypto ecosystem to thrive there, players headquartered in Asia Pacific in Hong Kong will need to attract plenty of talent. This will require both the presence of crypto-minded professionals and a net migration to Hong Kong.
Lai also said OKX will closely monitor upcoming regulatory developments and dedicate resources to ensure compliance.
In conclusion, Lai remarked that:
“Hong Kong has been waiting for years for this industry-friendly regulatory clarity. The Hong Kong government has sent a strong signal that it wants to support the development of virtual assets, which provides the fundamental foundation the industry needs. to invest and develop business presences in Hong Kong.
“The crypto industry is still young and it needs accommodating yet caring environments in which to thrive. OKX is very pleased to see that Hong Kong has signaled its willingness to be such an environment as it continues its leadership career as a global innovation hub.
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OKX is the world’s second largest crypto exchange by trading volume and a leading Web3 ecosystem. Trusted by over 20 million customers worldwide, OKX is known to be the fastest and most reliable crypto trading app for investors and professional traders around the world.
As the preferred partner of English Premier League champions Manchester City FC, McLaren Formula 1, golfer Ian Poulter, Olympian Scotty James and F1 driver Daniel Ricciardo, OKX aims to energize the fan experience with new financial and commitment opportunities. OKX is also the Tribeca Festival’s Top Partner as part of an initiative to attract more creators to the web3.
Beyond the OKX exchange, the OKX wallet is the platform’s latest offering for people looking to explore the world of NFTs and the metaverse while trading GameFi and DeFi tokens.
To learn more about OKX, download our app or visit: okx.com
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