Hong Kong Eases Virtual Asset Rules To Boost Fintech Hub Profile

Reuters
Nov 03

HONG KONG, Nov 3 (Reuters) - Hong Kong will ease rules to promote virtual asset trading liquidity as part of the city's push to become a major fintech and digital asset hub, government officials said on Monday.

Hong Kong's Securities and Futures Commission (SFC) will relax rules on Monday to allow locally licensed virtual asset trading platforms (VATP) to share global order books with affiliates overseas, Julia Leung, CEO of the securities watchdog, told the Hong Kong Fintech Week conference.

The move eases current rules that require VATP's order book - a list of buy and sell orders for virtual assets - to be ring-fenced in Hong Kong. The changes are designed to allow operations to tap global liquidity.

The relaxation comes as Hong Kong competes to become a global fintech and digital asset hub against rivals such as Singapore and the U.S. market, amid surging appetite for digital investments.

Meanwhile, Hong Kong's banking sector is poised to benefit from rising investment in digital transformation, according to the city's de-facto central bank.

"The momentum behind this transformation is underscored by substantial technological investment with total spending projected to reach more than HK$100 billion ($12.87 billion) every year in the next three years," said Eddie Yue, chief executive of Hong Kong Monetary Authority at the same forum.

($1 = 7.7675 Hong Kong dollars)

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