PANews reported on March 14 that Ru Haiyang, co-CEO of HashKey Exchange Business Group, systematically explained the breakthrough upgrade of Hong Kong's virtual asset regulatory system when participating in the CNBC Converge Live "Innovation and Security: Seeking a Balance in Cryptocurrency Regulation" roundtable discussion on March 12. He pointed out that the Hong Kong Securities and Futures Commission is building a world-leading flexible regulatory framework, striving to achieve a strategic transformation from "prudent regulation" to "innovation-driven", and setting a regulatory paradigm for the Asia-Pacific digital asset market.
Ru Haiyang reviewed the history of virtual asset regulation in Hong Kong and said that the Hong Kong regulatory authorities have always adhered to the forward-looking layout of "giving equal importance to regulation and development". The early professional team built a regulatory foundation that takes into account both market vitality and risk prevention and control with its deep accumulation in the fields of regulation, law and auditing. After the JPEX incident, the regulatory authorities placed investor protection in a key position, set strict standards in operating regulations, and were also very rigorous in the review of token listings. During this period, the regulatory authorities maintained close communication with the industry, laying a solid foundation for subsequent development.
Ru Haiyang further analyzed: "Nowadays, a series of changes are taking place. Half a year ago, there were only two licensed virtual asset exchanges in Hong Kong. Now, the SFC has issued licenses with specific operating conditions to another eight platforms through the "rapid licensing mechanism", and another eight are in the approval process. In addition, the SFC has set up a "Virtual Asset Advisory Group" to collect opinions from all parties in the market. While strictly fulfilling its regulatory responsibilities, it also takes the initiative to point out the direction for industry product innovation, such as focusing on promoting the development of pledge services and tokenized money market funds in the near future. This new transparent collaboration model has greatly improved the efficiency of coordination between supervision and the industry, and has effectively promoted the healthy development of Hong Kong's virtual asset industry."
Ru Haiyang emphasized that a clear regulatory framework is of great significance for attracting more institutional investors to enter the market and promoting large-scale applications in the field of virtual assets. At present, end customers are mainly concentrated in traditional financial institutions, and the integration of traditional finance (TriFi) and the encryption field has become an unstoppable industry trend. Under the active, pragmatic and scientific supervision of the Hong Kong Securities Regulatory Commission, and through the continuous efforts of the industry, the Hong Kong virtual asset industry is expected to usher in a more prosperous development.
