HashKey Sees Regulatory Change For Crypto
At the “Hong Kong Crypto Finance Summer Forum,” HashKey Group Chairman Xiao Feng emphasized the need for significant improvements in Hong Kong’s existing regulatory framework for the crypto industry. Xiao Feng expressed optimism about the potential for ongoing enhancements in the regulatory landscape, especially given the impending regulations surrounding Security Token Offerings (STOs).
Xiao Feng, chairman of HashKey Group, said that at the end of this year, we can see the Hong Kong Securities Regulatory Commission’s regulatory notice on STO, hoping to clarify the rules, so that the industry can know how to raise funds through tokenization.…
— Wu Blockchain (@WuBlockchain) August 25, 2023
Expected STO Regulations
While acknowledging that progress has been made in crypto regulations, Xiao Feng pointed out that there remains ample room for refinement. He anticipated that future changes would address several regulatory gaps that are yet to be covered. One crucial area awaiting regulatory clarity is STOs – the issuance of security tokens. Xiao Feng predicted that by the end of the year, the Hong Kong Securities and Futures Commission would issue a regulatory circular pertaining to STOs.
According to Xiao Feng, the introduction of STO regulations holds immense significance for the crypto finance sector’s connection to Hong Kong’s tangible economy and technological advancements. He underscored that facilitating STO-based fundraising for technology companies could effectively bridge the gap between crypto finance and real-world economic activities. This alignment, in turn, could contribute to Hong Kong’s technological innovation drive.
Calls for Precise STO Rules
To achieve this symbiotic relationship between crypto finance and the broader economy, Xiao Feng stressed the importance of regulatory clarity. He called for the Hong Kong Securities and Futures Commission to provide precise and comprehensive rules within the anticipated regulatory circular. These rules would serve as a guide for industry participants looking to navigate the world of tokenized fundraising.
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The HashKey Group Chairman’s statements echo sentiments from many experts and stakeholders who recognize the potential benefits of aligning crypto and blockchain innovations with established economic sectors. The impending STO regulations in Hong Kong could set a precedent for other jurisdictions to follow, creating a framework that encourages innovation while ensuring investor protection and regulatory compliance.
