Hong Kong Monetary Authority Chief Executive: The level of cryptocurrency regulation in various regions is beginning to converge, and banks should review customers individually before deciding whether to open accounts

ChainCatcher news, according to the Ming Pao report, the President of the Hong Kong Monetary Authority, Eddie Yue, stated during his visit to the UAE that Hong Kong has had strict regulations on virtual assets in the past, with procedures nearly prohibitive, which were relatively vague compared to other places. Currently, the regulatory levels in various regions are beginning to converge, which is beneficial in reducing regulatory arbitrage caused by differing standards in the future.

Regarding rumors that the Monetary Authority had previously questioned why several major banks in Hong Kong do not accept account openings for virtual asset exchanges, Eddie Yue responded that the authorities have always communicated with the banks, and "whether there was pressure during the communication is felt differently by everyone." Since virtual assets are still a new project, the banking regulatory framework and operational requirements have always targeted traditional financial businesses, so the industry also needs to continuously update its understanding and clarify the regulatory expectations with the authorities. He pointed out that once financial institutions obtain a license, there are already regulatory bodies examining their operations, and the authorities have anti-money laundering and customer due diligence requirements for banks. Banks need to adhere to a "risk-based" principle and should have their own review procedures for each customer before deciding whether to open an account.

Last year, the Monetary Authority conducted cross-border central bank digital currency payment tests with the Central Bank of the UAE, the Bank for International Settlements, the People's Bank of China, and the Central Bank of Thailand, using the Digital Bridge platform for real cross-border transactions for enterprises. Eddie Yue stated that the goal is to launch the "simplest viable product" at the beginning of next year, expecting more central banks to join the platform, but hopes to initially maintain it at a manageable scale. He indicated that the current challenge lies in who is responsible for managing the platform, whether it will remain decentralized, and how to adapt to various regulatory rules, provide liquidity, and collect relevant collateral, among other issues. (source link）