Hong Kong's central bank unveils plans for new crypto regulation in July 2022

  • The Hong Kong Monetary Authority has unveiled plans for a new regulatory regime, revealing ties with crypto hub Singapore. 
  • The de facto central bank would implement the regulation in stablecoins, investor protection and institutional investments in cryptocurrencies. 
  • Regulators in Hong Kong are wary of volatility and scams in the crypto ecosystem.

Hong Kong's de facto central bank, the Monetary Authority, has revealed plans for introducing new crypto regulation in July of this year. Regulators in Hong Kong are keen to introduce norms for investor protection. 

Hong Kong central bank gears up for crypto regulations in 2022

Hong Kong Monetary Authority, the de facto central bank, has new plans for cryptocurrency regulation. The central bank plans to unveil them in July 2022. The monetary authority has decided to approach the crypto industry on three different verticals: stablecoins, investor protection and institutional investments. 

Commenting on the upcoming regulation, HKMA was quoted recently:

We place emphasis on issues that may affect the public's confidence in, and the safety, efficiency, and soundness of, our payment systems, and accord appropriate priority to the protection of users.

The central bank is seeking feedback from stakeholders and investors by March 31, 2022. In their recent paper, the bank focuses on the utility of stablecoins and the implication of accepting them for payments. 

Regulators are wary of the volatility associated with cryptocurrency prices. Regulators worldwide have shifted towards increased oversight of the crypto industry due to the rising frequency of scams. 

Therefore, the central bank of Hong Kong has adopted "same risk, same regulation" in crypto. The bank is keen on protecting users from financial instability as cryptocurrency's connections with traditional institutions increase from a regulatory perspective. 

The regulation comes when policymakers around the world are drafting regulations and policies to stop the use of cryptocurrencies for illicit purposes. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Ethereum price bullish reversal sets ETH on a return to $3,820

Ethereum price is forming a bullish chart pattern that projects a 12% bounce toward $3,820. Only a slice above $3,398 would validate the optimistic forecast. A stiff hurdle may emerge at the 78.6% Fibonacci retracement level at $3,709.

More Ethereum news

Cardano price presents buy opportunity before ADA gears up for 40% ascent

Cardano price could tag lower levels before ADA bulls prepare to reverse the period of underperformance. The Ethereum killer could slide toward the January 10 low at $1.07 before falling toward the lower boundary of the prevailing chart pattern at $1.04.

More Cardano news

Algorand price due for a 25% upswing as ALGO reveals a bullish setup

Algorand price has seen a considerable drop over the past 24 hours and shows that this bearish outlook might be coming to an end. As ALGO finds its footing at the current support level, investors can position themselves to maximize the gains that will follow.

More Algorand news

Chainlink must return above this price level or LINK will fall back to $20

Chainlink price is facing difficulties moving above a significant resistance zone on the weekly chart. Failure to close above this resistance on the weekly chart could trigger a strong resumption of falling prices. Chainlink price behavior  for the remainder of Jan will likely be decided this Friday.

More ChainLink news

BTC eyes retest of $50,000

Bitcoin price shows a resurgence of retail interest as it bounced off a crucial psychological level. The recent uptrend is preparing a base on a short-term time frame so BTC can kick-start a larger leg-up. Interestingly, on-chain metrics are lining up with the bullish outlook portrayed from a technical perspective. An uptrend now seems inevitable for BTC and, therefore, the larger ecosystem.

Read full analysis