Digital asset providers and exchanges will have to operate under the new regulations as well as apply for a new license from the regulating body.
On Thursday, Bloomberg interviewed the chief executive officer, Julia Leung, of Hong Kong’s Securities and Futures Commission (SFC), who said that the guidelines are to emerge in May and will come into effect in June.
Leung said that the basis for the digital asset regulating framework came up way back in October of 2022 after an important consultative process in the government. The government’s statement written regarding the digital asset sector and the need for regulation include sectors such as DeFi, as well as the Non-fungible Tokens.
After the consultative process, SFC received over 150 responses from various figures in the industry.
The trend to create new regulations for the crypto industry is starting to become larger over time. The newly approved European regulations “Transfer of Funds regulation” focuses on preventing money laundering, as well as “Markets in Crypto Assets” known as MiCA, which aims to “protect consumers and investors while ensuring financial stability and supporting innovation”. Singapore and Canada were also focusing on compiling new regulations as well as enforcing them.