Hong Kong Accelerates Crypto Product Approvals Post JPEX Incident
Following the JPEX Rugpull case, Hong Kong’s compliance exchange OSL has observed a quicker approval process for cryptocurrency products by the government.
This move is seen as an effort to bolster the development of the compliant cryptocurrency industry. Additionally, there’s an expectation of significant involvement from Hong Kong banks in the sector, particularly in tokenized virtual assets.
Post JPEX Incident
Many believe the JPEX incident, despite its disruptive nature, has catalyzed a faster pace of new product approvals for licensed virtual asset operators. BC Technology, a subsidiary of OSL and a licensed virtual asset platform, noted the government’s consistent support. They also observed that the government maintains strict oversight of the industry.
The firm expects increased scrutiny on non-compliant platforms and a more rapid product approval process in the wake of the JPEX incident.
Banking Role in Virtual Assets
Financial technology solution providers like Sifang Innovative Hong Kong foresee a future where banks play a more integral role in the virtual asset industry.
They aim to assist in tokenizing virtual assets and integrating them with banking systems. The involvement of banks, recognized for their credibility and trust among the public, is likely to enhance the development of Hong Kong’s virtual asset market.
This collaboration between banks and the virtual asset industry could lead to more regulated platforms for trading virtual assets, with traditional banking services like withdrawals and deposits.
Prospects for Tokenized Virtual Assets and Custody Wallets
Chen Yaowen of Sifang Innovative Hong Kong predicts that banks will significantly expand into developing tokenized virtual assets and custody wallets.
The JPEX incident has seemingly prompted the Hong Kong government to expedite the approval of cryptocurrency products, signaling a positive shift towards a more regulated and compliant virtual asset industry.
Banks are increasingly involving themselves in tokenization and virtual asset management. Consequently, Hong Kong is positioning itself as a hub for secure and regulated cryptocurrency trading and investment.
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