Hong Kong to Introduce Virtual Asset Service Provider Licensing System to Enhance Industry Image

Hong Kong to Introduce Virtual Asset Service Provider Licensing System to Enhance Industry Image

According to reports, on March 17th, when delivering a video speech at the 2WEB3 FEST Hong Kong 2023 event, the Financial Secretary of the Hong Kong Special Administrative Region Government, Chen Maobo, stated that in the past few years, the virtual asset industry in Hong Kong is starting to develop steadily. Under the principle of “same activities, same risks, and same supervision”, Hong Kong will introduce a virtual asset service provider licensing system in June this year. “We believe that by establishing an appropriate regulatory licensing system to eliminate the black sheep in the industry, it is beneficial to enhance the overall image of the industry and promote the healthy, orderly and responsible development of the virtual asset industry.” Chen Maobo said. (Interface News)

Chen Maobo: Hong Kong will introduce a virtual asset service provider licensing system in June

Analysis based on this information:


The Financial Secretary of the Hong Kong Special Administrative Region Government, Chen Maobo, announced at the 2WEB3 FEST Hong Kong 2023 event that the virtual asset industry in Hong Kong is developing steadily. To promote the healthy and responsible development of the industry, Hong Kong plans to introduce a virtual asset service provider licensing system in June 2023. This new system aims to eliminate the negative image of the industry, which is often associated with money laundering and financial scams.

The virtual asset industry has been growing in Hong Kong over the past few years, and it poses a risk to investors and the financial system as a whole. Therefore, the government has decided to regulate the industry with the same principle of “same activities, same risks, and same supervision.” By introducing a licensing system, the Hong Kong government aims to create a framework that will enable regulators to keep a close eye on regulatory violations and prevent illicit activities.

The licensing system will ensure that all virtual asset service providers comply with Hong Kong’s regulatory requirements. The providers will have to follow strict Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures to identify and monitor any suspicious activities. They will be mandated to maintain adequate capital and liquidity, and their systems will be thoroughly audited to ensure they comply with regulatory standards.

By introducing the licensing system, Hong Kong aims to enhance the overall image of the virtual asset industry and promote its healthy, orderly, and responsible development. This move is expected to increase trust and confidence among investors, leading to an increase in demand for virtual assets.

In conclusion, the move by the Hong Kong government to introduce a virtual asset service provider licensing system is a step forward in regulating the virtual asset industry. This will help prevent financial crimes such as money laundering and fraudulent activities while enhancing the industry’s image. The introduction of the licensing system is a significant development in promoting safe and sound virtual asset investments.

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