The Hong Kong Securities & Futures Professionals Association (HKSFPA) has pushed for a pioneering shift in the city’s cryptocurrency regulatory framework. On April 22, they advised creating a self-regulatory committee for crypto firms, emphasizing the need for industry-led development rather than stringent supervision. This move is aimed at maintaining Hong Kong’s edge as a global financial hub, suggesting that autonomy in licensing could foster more robust growth in the securities, futures, and virtual asset industries.

In contrast to other regions tightening controls, such as Lithuania’s stricter regulations set for 2025, Hong Kong has adopted a more supportive approach towards virtual assets. Recently, the Securities & Futures Commission (SFC) approved Bitcoin and Ether exchange-traded funds, a progressive step not mirrored by the U.S. Securities and Exchange Commission, which remains hesitant on similar ETFs and specific licenses for crypto exchanges. The HKSFPA’s strategy of balanced supervision could position Hong Kong as a leading center for crypto innovation and investment.

HKSFPA