[Blockchain Today Reporter Park Yohan] Hong Kong’s Financial Services Minister and Finance Minister Christopher Hui defended the recent proposal by the Hong Kong Financial Services Authority and the Ministry of Finance (FSTB) to ban private cryptocurrency transactions.
According to Cointelegraph reports, Hui said in a speech at the Hong Kong startup virtual fintech summit on the 27th, “This proposal is in line with the government’s appropriate crackdown plan to respond appropriately to the new cryptocurrency market.”
Earlier, FSTB issued a proposal calling for a ban on retail cryptocurrency trading and a strict regulatory regime for cryptocurrency exchanges after months of consultation. As part of a proposal to be put forward to the city’s legislature, FSTB has insisted on a minimum investment limit for cryptocurrency trading of around $1 million. It is known that if this provision is passed by the government, about 93% of Hong Kong’s population will be excluded from the cryptocurrency market.
However, Hui said, “By imposing mandatory requirements to protect investors, prohibit market manipulation, and prepare for money laundering and terrorist financing, the proposed regime will further promote the development of the Hong Kong virtual asset industry and utilize a world-class regulatory framework. I see.”
Apart from shutting down private cryptocurrency activities, Hong Kong’s restriction laws could also force exchanges in Hong Kong to exit, despite government plans to allow foreign companies to obtain business licenses in cities.
In fact, in December 2020, when FSTB was still in discussion, several industry insiders criticized the cryptocurrency regulation plan. Critics at the time argued that these restrictive digital currency laws were detrimental to Hong Kong’s financial innovation agenda.
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