Hong Kong regulators to review crypto rules ‘as appropriate,’ says finance secretary

Hong Kong’s finance secretary said that the regulators will “review requirements” for cryptocurrency-related activities as necessary as the crypto industry develops.

Christopher Hui, Secretary for Financial Services and the Treasury, said today at a parliamentary questioning that the Hong Kong Monetary Authority and the Securities and Futures Commission would “keep in view market developments and review the requirements on VA-related activities as appropriate.” He made the comment when questioned by a lawmaker about whether the regulators would speed up the vetting process for crypto licenses and relax rules for the distribution of crypto assets by intermediaries.

Hui noted that licensed corporations or registered institutions can distribute crypto-related products after notifying the regulators, and they “do not need to apply for modification of licensing conditions.”

The questioning comes after many global exchanges — including OKX, Gate.io and HTX — withdrew their license applications in Hong Kong in May ahead of a deadline set by the SFC. The regulator said that after June 1, all crypto trading platforms operating in Hong Kong must be either licensed by the SFC, or “deemed-to-be-licensed” applicants.

Duncan Chiu, a Hong Kong lawmaker, has raised concerns over the “excessively stringent” licensing regulations, criticizing that these rules have pushed major global exchanges away from entering Hong Kong. 

Chiu wrote in an opinion piece last month that the license withdrawals of multiple exchanges have “shaken the confidence of market participants in Hong Kong's push to develop Web3.”