HKEX Proposes To Regulate Crypto Sphere On Par With Fiat Money
The legal framework for the regulation of the crypto field and traditional finance should be the same. Such a thesis is contained in the study of the Hong Kong Stock Exchange (HKEX), the sixth largest exchange in the world, which was published on October 18 on the official website.
Regulators should keep pace with the development of innovative financial technologies. In the event that this occurs, existing regulations should be applied to companies that operate in the financial and technical sphere, based on their compliance with traditional financial services.
For instance, blockchain technology is quite possible to incorporate into the sphere of investments, trading, clearing services, and settlements. The provision of digital assets on blockchain could be regulated within the regulatory framework for securities.
Researchers believe that, in general, there is the principle of consistency everywhere despite the difference in approaches to the crypto regulation in different countries of the world. Such measures are aimed at supporting fair competition and company performance.
The HKEX document provides an example of organizing a “world sandbox” to study blockchain, which was created by regulators from 11 countries. They limited themselves exclusively to the banking sector, but this experience can be spread on a larger scale.
HKEX advises Hong Kong regulators to apply an effective management system, including more cases of using artificial intelligence and large amounts of data. The system should include KYC/AML requirements with support of face recognition, monitoring opinions and corporate attitudes.
As previously reported, the Securities and Futures Commission of Hong Kong (SFC) plans to introduce rules concerning the crypto sphere.