The Hong Kong Securities and Futures Professionals Association (HKSFPA) has recommended that local crypto companies set up a separate committee to monitor compliance with regulatory requirements.

The HKSFPA's advisory letter notes that Hong Kong financial regulators are too focused on supervision, but there is no organization in the administrative region that would support the development of the crypto industry. To ensure that Hong Kong remains competitive in the global securities market and strengthens its position as an international financial centre, the HKSFPA has called on the Hong Kong Securities and Futures Commission (SFC) not to interfere with the establishment of legitimate self-regulatory bodies and to delegate some of its powers to them.

“The SFC should retain powers to monitor market conduct while sharing licensing powers between securities and virtual asset firms,” the HKSFPA proposed.

Last August, the HKSFPA published similar recommendations, calling on Hong Kong regulators to take a balanced approach to regulating digital assets. This would protect investors from the risks of investing in crypto assets and create favorable conditions for the development of the cryptocurrency industry in Hong Kong, HKSFPA is confident.

Recently, the Hong Kong Monetary Authority (HKMA) analyzed the use cases for government-owned stablecoins (CBDCs) and concluded that a wholesale central bank digital currency has more advantages than a retail one.