The HKSFPA proposes establishing an autonomous body to oversee crypto regulations, in addition to other recommendations.
In an announcement on April 22, the regulatory authority suggested the need for self-regulation in the securities and futures sector, asset management, and cryptocurrencies. The statement emphasized that implementing crypto self-regulation would enhance the economic potential of the region as a whole.
In comparison to other nations, the body stated that swiftly progressing jurisdictions typically feature some sort of industry regulation, acting as an unofficial guiding force for development.
Many economically advanced areas around the world, including my country, have set up legal industry self-regulatory bodies to promote industry growth and preserve market balance. The Association proposes that Hong Kong consider adopting a similar strategy.
Potential Market Utility
According to the announcement, the organization is working on shaping the market framework and implementing crypto regulations. If a specific industry takes on some self-regulation, potential issues among businesses may be identified before reaching the financial regulatory body, resulting in a more comprehensive approach.
Additionally, the financial regulatory body will find it easier to perform its duties effectively, thus enhancing investor protection in the market. This will foster a robust competitive landscape with various suggested models. The organization presented four alternatives for regulatory guidance.
An independent organization that regulates itself in the securities market employs two primary strategies to foster competition. First, it expedites business concentration, shifting some regulatory obligations from stock exchanges and regulatory bodies, allowing for a more competitive environment, and enabling securities trading businesses to concentrate on growth and development.
Crypto Firms Involved in Regulation
Those involved have the duty to ensure ethical advertising practices, maintain an acceptable standard of corporate governance, and represent their jurisdictions favorably on the global stage. Lately, international regulatory bodies have intensified their efforts to safeguard investors from deceitful actors in this industry.
The regulations instituted by authorities can be criticized as limiting market activity, but a more collaborative approach from industry players could actually foster growth within the sector.
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2024-04-22 21:27