In a recent interview, prominent Hong Kong licensed lawyer Gilbert NG shed light on the potential implications of the actions taken by the United States Securities and Exchange Commission (SEC) on the cryptocurrency exchange Binance, contrasting it with their stance on USDT (Tether).
Mr. NG highlighted that the SEC’s approach towards Binance differs significantly, as they are pushing for Binance to completely withdraw from the United States.
This move could potentially have ramifications on Binance’s license application and operations in other jurisdictions, including Hong Kong.
However, Mr. NG also emphasized that the SEC’s actions have minimal impact on Hong Kong’s regulatory oversight in the cryptocurrency domain.
Unlike the United States, which currently lacks specific legislation and regulations concerning cryptocurrencies, Hong Kong already possesses a well-defined legal framework for these digital assets. Consequently, the regulatory certainty in Hong Kong stands in stark contrast to the United States’ situation.
One crucial distinction lies in the definition of securities between the two regions. Certain coins that may be classified as security tokens in the United States might not receive the same classification in Hong Kong.
Presently, retail investors in Hong Kong are prohibited from purchasing security tokens, with only professional investors being permitted to engage in such transactions.
However, Mr. NG’s insights shed light on the contrasting approaches to cryptocurrency regulation between the United States and Hong Kong.
These divergences in attitudes and legal frameworks could have significant implications for the future of cryptocurrency exchanges and investors operating in these regions.
A Hong Kong legislator told the media that apart from exchanges and virtual asset management, Hong Kong has not stated that it needs to be regulated; for example, game tokens, as long as they do not involve securities and futures, will not be regulated, and Hong Kong is relatively free to develop Web3.
Hong Kong’s Crypto Revolution: Talent, Licenses, & Web3 Growth
In a recent report, it has been revealed that Hong Kong’s Web3 industry is struggling to find talent, which is identified as its most significant obstacle compared to policy regulation and funding. Preliminary estimates suggest that the industry requires a minimum of 50,000 to 100,000 skilled professionals.
Guest speaker Wu Jiezhuang, a member of the Hong Kong Legislative Council and co-founder of G-Rocket, sheds light on the issue. Wu emphasizes the need for talent in developing the Web3 sector and shares his determination to create a favorable environment for entrepreneurs in Hong Kong.
Furthermore, Hong Kong took a crucial step toward implementing the “International Virtual Assets Center Plan” with the enforcement of the “Guidelines Applicable to Virtual Asset Trading Platform Operators” on June 1.
The Hong Kong, Securities and Futures Commission, is now accepting license applications from virtual asset trading platform operators, enabling retail investors to utilize licensed platforms.
ChainCatcher conducted an exclusive interview with Wu Jiezhuang to discuss the impact of the newly implemented virtual asset licensing system on Hong Kong’s virtual asset development.
Wu believes that the licensing system will provide a stable and secure framework for both project parties and investors, attracting more participants to Hong Kong’s virtual asset trading.
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