ChainCatcher news, the Director of the Regulatory and Enforcement Division of the Hong Kong Securities and Futures Commission, Zheng Dejia, stated that the SFC and the Police Force have established a working group on virtual asset trading platforms, which has held four meetings in October and November. Subsequently, it is planned to conduct information exchanges regarding individual cases and incidents related to virtual platforms at least twice a week according to this mechanism.Both parties will formulate guidelines to assess the risks of individual cases to determine whether further investigation or enforcement actions are necessary. If the SFC discovers particularly suspicious cases that require rapid enforcement or related actions, it will contact the police as soon as possible to ensure effective coordination between both parties during the investigation and enforcement period.He continued to state that during the regular information exchange period of one week, if the SFC discovers particularly suspicious cases that require rapid enforcement or related actions, it will contact the police as soon as possible to ensure effective coordination between both parties during the investigation and enforcement period.Regarding the number of victims and the amount involved in HongKongDAO and BitCuped, the SFC pointed out that the cases are still under investigation, and no relevant information is currently available. When other suspicious platforms are identified in the future, if assessed as necessary to be disclosed, they will be announced as soon as possible.

ChainCatcher news, according to Caixin, the Hong Kong Securities and Futures Commission and the Monetary Authority have reviewed the current policies for intermediaries intending to engage in virtual asset-related activities. In response to the latest market developments and inquiries from the industry, they have updated the policy to further expand the extent to which retail investors can engage in the virtual asset field through intermediaries, under appropriate safeguards, and allow investors to directly deposit virtual assets with intermediaries.To avoid any doubts, the updated circular will replace the joint circular issued by the Securities and Futures Commission and the Monetary Authority regarding intermediaries' virtual asset-related activities on January 28, 2022.

ChainCatcher news, the Secretary for Financial Services and the Treasury of Hong Kong, Hui Cheng-yu, stated during his appearance on the Hong Kong Investment Committee program that non-fungible tokens (NFTs) that exist solely as digital collectibles are not regulated by the Securities and Futures Commission. However, if they constitute "collective investment" or have the nature of "securities," they must be approved by the Securities and Futures Commission before being sold in the market.In addition, the Hong Kong Monetary Authority is preparing a public consultation on stablecoin regulation.

ChainCatcher news, according to the Hong Kong Economic Journal, Chief Executive John Lee stated that the Securities and Futures Commission has announced a list of different trading platforms, which he believes will help investors make decisions. He urged investors to invest in licensed platforms, as those investing in unlicensed platforms must bear the risks themselves.In addition, John Lee stated that the authorities will ensure that the information provided is as transparent and clear as possible, promote investor education, and advise everyone to understand the nature and risks of investment products as much as possible.

ChainCatcher news, the Hong Kong Legislative Council's Financial Affairs Committee will discuss the regulation of virtual asset trading platforms on the 9th of next month. The committee chairman, Lam Kin-fung, stated that the chairman of the Securities and Futures Commission (SFC), Tim Leung, and the CEO, Leung Fung-yi, have been invited to attend. He hopes that the SFC will soon publicly disclose the names of suspicious institutions and launch "grounded" promotional methods to enable investors to take timely precautions and promote the industry's development.Lam Kin-fung indicated that the JPEX incident reflects the inadequacies of the relevant regulatory agencies and government departments in regulation and public education. He mentioned that the SFC has announced plans to further enhance information dissemination and optimize existing systems, including publishing the list of licensed virtual asset trading platforms, the list of those that have ceased operations, the list of platforms considered licensed, and the list of applicants that have attracted the most public attention on its website. This will provide investors with more specific and clear information, which will also benefit the media and the public in monitoring.Lam Kin-fung believes that in addition to publishing relevant information on the website, the SFC should also conduct public promotions through more diversified and "grounded" methods, including holding press conferences and using social media to update information in a timely manner, especially in the event of emergencies, to strengthen immediate response and crisis management effectiveness.

ChainCatcher news, in response to the concerns of many industry insiders that the recent unlicensed cryptocurrency exchange JPEX case in Hong Kong may lead to more cautious cryptocurrency regulatory policies in Hong Kong, Legislative Council member Wu Jiezhuang stated in an interview with ChainCatcher: "The JPEX case, as a single event, will not overall affect Hong Kong's cryptocurrency regulatory policies. Currently, the JPEX case has not been adjudicated, and it only indicates that the exchange has suspicions and possibilities of fraud, which may not involve cryptocurrency trading activities. I have also communicated with the leaders of government departments, and they similarly believe that the JPEX incident will not have a significant impact on overall policy. Instead, they view this incident as a good education for investors, emphasizing that trading should be conducted on licensed exchanges to ensure asset safety."In addition, Member Wu Jiezhuang also mentioned that the JPEX case has highlighted some regulatory loopholes, such as the fact that offline cryptocurrency exchange shops have not yet been included in regulation, which is something the government needs to improve in the future. Furthermore, the government should disclose suspicious information as early as possible and timely remind users to minimize their losses.

ChainCatcher news, according to Hong Kong's Sing Tao Daily, the Chief Executive of the Hong Kong Special Administrative Region, John Lee, expressed his concern on September 21 during a speech at a reception celebrating the 74th anniversary of the founding of the People's Republic of China and the 26th anniversary of the return of Hong Kong to China. He mentioned a fraud case involving a virtual asset trading platform that has not obtained a license. He believes that investor education is very important, and the financial services sector must clearly inform investors of the risks when recommending any investment projects. This incident highlights the importance of investing in licensed and regulated virtual asset trading platforms; otherwise, investors find it difficult to obtain protection. He stated that the SAR government's policy is to implement an effective regulatory system to protect investors; to ensure that relevant information is disclosed transparently; and to emphasize and promote investor education.In addition, Legislative Council member Lee Wai-hung stated during his speech that the JPEX incident proves that establishing a sound licensing system for virtual assets in Hong Kong is the right move. He urged the public to use licensed institutions and reputable companies, and not to easily trust unlicensed so-called internet celebrities or investment experts. He reminded the public that no investment product offers extremely high returns with no risk at all.The virtual asset trading platform JPEX has recently been named by the Hong Kong Securities and Futures Commission as operating without a license. According to Hong Kong media reports, the police have arrested 11 people in connection with the case, involving an amount of approximately HKD 1.3 billion (about RMB 1.195 billion).

ChainCatcher message, Hong Kong Legislative Council member Wu Jiezhuang stated on platform X: "Yesterday, regarding the views shared by Ethereum founder Vitalik Buterin on developing virtual asset projects in Hong Kong, I respect his right to speak, but I also believe he does not understand or recognize the situation in Hong Kong. I sincerely invite Mr. Vitalik to come to Hong Kong to understand the situation. I am willing to coordinate with relevant institutions and enterprises to share the situation in Hong Kong with him."In addition, he added that Hong Kong is a special administrative region with a sound process for formulating policies and laws. Under the 'one country, two systems' principle, Hong Kong has legislative power. As a member of the Legislative Council of the Hong Kong Special Administrative Region, I would like to share with everyone that every policy or law in Hong Kong undergoes a period of discussion, including government drafting of policies, public consultations, discussions in multiple committees of the Legislative Council, and plenary discussions. Therefore, I hope Vitalik understands the actual situation; there is no complex situation between the country and Hong Kong as he mentioned. The central government has always expressed support for the development of 'one country, two systems' in Hong Kong, so there is space for Hong Kong to formulate policies for virtual assets, and we welcome compliant enterprises from around the world to develop in Hong Kong."Wu Jiezhuang concluded: "Hong Kong's policies and laws will not change from day to day; all relevant strategies and regulations are formed through significant social consensus and complete procedures. Therefore, I can tell Mr. Vitalik that Hong Kong's policies are very stable."

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）

ChainCatcher news, according to Bloomberg citing informed sources, Hong Kong financial regulators convened banks, crypto platforms, and other industry participants this Monday to primarily discuss how to address the ongoing challenges faced by crypto companies in opening bank accounts. This is the second meeting since late April where Hong Kong regulators have pushed for greater bank participation in the crypto sector.Previously reported, in late April this year, the Hong Kong Monetary Authority held a roundtable meeting with the Securities and Futures Commission, engaging with the banking industry and some virtual asset-related institutions for direct communication regarding the "difficulty in opening accounts." (Bloomberg)

ChainCatcher news, the Financial Secretary of the Hong Kong Special Administrative Region, Paul Chan, stated at the 2023 Caixin Summer Summit that Hong Kong is actively promoting the development of virtual assets. Regarding opportunities and risks, there are indeed some virtual asset service providers that operate improperly, such as mixing their own funds with clients' funds, and operators running platforms while also acting as traders."But the fundamental technology of Internet 3.0 is blockchain, whether you like it or not, blockchain will definitely continue to develop in the future," Paul Chan said. Blockchain can build open, secure, and low-cost platforms, and Hong Kong plans to introduce a suitable regulatory system to promote the responsible development of Internet 3.0 and virtual assets in Hong Kong. (Caixin)

ChainCatcher news, the Hong Kong Monetary Authority (HKMA) announced today the launch of the "e-HKD" pilot program. Sixteen selected companies from the finance, payment, and technology sectors will conduct the first round of trials within this year. The program will explore potential use cases for e-HKD in six areas, including comprehensive payments, programmable payments, offline payments, tokenized deposits, Web3 transaction settlement, and tokenized asset settlement.HKMA Chief Executive Eddie Yue stated: Although the HKMA has not decided whether or when to launch e-HKD, we are pleased to initiate the e-HKD pilot program. This is a great opportunity for the HKMA to collaborate with the industry to explore innovative use cases and to prepare for the potential launch of e-HKD in the future. (Source link)

ChainCatcher news, Hong Kong Financial Secretary Paul Chan said today at the 2023 Digital Economy Summit that the emergence of Web3 is triggering a new wave of innovation in financial technology. Five years ago, Hong Kong had about 180 fintech companies, and now there are over 800 related enterprises, including cross-border financial services, blockchain services, etc. Virtual assets, stablecoins, DeFi, NFTs, and more. These technologies will become a major force for financial transformation in the coming years, and this is an irreversible trend.However, at the same time, some important questions have arisen, such as whether there are regulatory loopholes? Will risks be transmitted to the traditional financial system, threatening financial stability? How can we best protect individual investors from fraud and scams? Paul Chan stated that in promoting Web3, virtual assets, and other financial innovations, the Hong Kong government will continue to strike an appropriate balance between regulation and facilitation. The Hong Kong government is committed to creating a favorable environment for the flourishing of fintech companies. (Source link)