Hong Kong regulators expand financial reporting oversight to licensed crypto firms
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The Hong Kong Securities and Futures Professionals Association met with regulators to discuss issues related to the operating costs of virtual asset platforms.
According to Foresight News , the Hong Kong Securities and Futures Professionals Association (HKSFPA) held a meeting on July 3 with Mr. Chan Ho-lim, Under Secretary for Financial Services and the Treasury, the secretaries-general, Mr. Yip Chi-hang, Executive Director of the Intermediaries Division of the Securities and Futures Commission, Ms. To Yee-wah, Senior Director, and Ms. Wong Lok-yan, Director and Head of the Fintech Group, to discuss issues such as new policies on virtual assets, licensing system and operating costs. At the meeting, the Hong Kong Securities and Futures Professionals Association highlighted the high operating cost pressures currently faced by Virtual Asset Platforms (VATP), including the monopoly of Hardware Security Module (HSM) supply, restrictions on the ratio of cold and hot wallets, excessively high insurance coverage requirements, and on-chain transaction miner fees. They urged regulators to flexibly adjust relevant requirements while ensuring risk control. Furthermore, both sides exchanged views on issues such as the delineation of regulatory boundaries, license approval efficiency, timelines for approving innovative products, and the division of regulatory responsibilities for VA Payments.
Hong Kong Financial Secretary Paul Chan: 70% of offshore RMB settlements are completed through Hong Kong, with monthly settlement volume exceeding RMB 41 trillion.
PANews reported on July 5th that Hong Kong Financial Secretary Paul Chan Mo-po published a statement outlining his commitment to continuing to promote the internationalization of the RMB and the interconnectivity of financial markets, further consolidating Hong Kong's position as a global offshore RMB hub. Data shows that over 70% of global offshore RMB payments and settlements are currently completed through Hong Kong; the scale of RMB interbank settlements within the local banking system has exceeded RMB 41 trillion, equivalent to approximately RMB 2 trillion per day. With China expanding its high-level opening-up and enterprises accelerating their globalization efforts, the demand for RMB in cross-border trade, investment, and fund settlement will continue to rise, driving further expansion of the offshore RMB market. In terms of policy support, the Hong Kong Monetary Authority, with the assistance of the People's Bank of China, has launched an RMB funding arrangement mechanism to reduce banks' costs of obtaining RMB funds, supporting trade finance and corporate operational needs. Several banks have already expanded their related businesses based on this mechanism.
The People's Bank of China and Hong Kong regulators support the joint establishment of a fixed-income and currency electronic trading platform in Hong Kong.
PANews reported on July 7 that the People's Bank of China, the Hong Kong Monetary Authority, and the Hong Kong Securities and Futures Commission jointly announced their welcome to the China Foreign Exchange Trading Center and the Hong Kong Stock Exchange for jointly establishing a Hong Kong electronic fixed income and currency trading platform. This initiative aims to deepen cooperation between the mainland and Hong Kong financial markets and consolidate Hong Kong's position as an international financial center and offshore RMB business hub. The announcement stated that the platform will be based in Hong Kong, oriented towards the international market, and will adhere to international market standards and Hong Kong regulatory requirements. It will strive to create an open, fair, efficient, and stable fixed income and currency trading infrastructure, and will enhance trading efficiency and transparency, promote price discovery, reduce transaction costs, and explore technological innovation to empower financial services. The specific launch date of the platform will be announced in due course.
Mirae Asset's Hong Kong branch will launch a tokenized asset trading platform within three years, initially targeting Hong Kong clients.
According to a report by Straight News, Mirae Asset's Hong Kong branch plans to launch a tokenized asset trading platform within the next three years. This platform aims to convert existing investment assets and traditional financial assets into tokens for clients to trade. The company has recently expanded its business based on its newly launched trading platform, MAPS (Mirae Asset Portfolio Service), striving to transform from institutional business to a client-centric platform. Initially targeting Hong Kong clients, the platform's long-term goal is to establish a cross-regional trading architecture connecting South Korea and overseas markets.
Financial AI operates outside of regulation; the UK's FCA plans to expand its jurisdiction over AI giants such as OpenAI and Anthropic.
According to Beating's monitoring, Sheldon Mills, Executive Director of the UK Financial Conduct Authority (FCA), warned that regulators are facing an "arms race" to keep pace with the rapid adoption of AI in the financial services industry as businesses and individuals accelerate their adoption. Mills' report on the financial impact of AI indicates that 20% of UK adults are already willing to let large models make their savings or borrowing decisions. While this service offers an experience equivalent to regulated traditional financial advice, its lack of regulatory oversight means users are unable to obtain any financial compensation when they suffer losses. The report recommends an urgent review of the risks of unregulated financial AI and an application for expanded legislative authorization to strengthen oversight of core technology providers such as Anthropic, OpenAI, Amazon, Google, and Microsoft through a "key third party" mechanism (the UK government has not yet finalized the specific list). It also recommends collaboration to launch free public financial literacy and decision-making guidance services assisted by AI.
The Hong Kong Securities and Futures Commission is discussing the removal of the 10% minimum investment exemption for virtual asset management.
According to Odaily Odaily, the Hong Kong Securities and Futures Professionals Association stated that representatives from the regulatory body, including Ip Chi-hang, Executive Director of the Intermediaries Division of the Hong Kong Securities and Futures Commission, and Chan Ho-lim, Under Secretary for Financial Services and the Treasury, met to discuss several specific policy changes, including: canceling the previous 10% minimum investment exemption for virtual asset management, and the new regulations taking effect immediately without a transition period. In addition, the Hong Kong Securities and Futures Commission (SFC) stated that it has communicated with the Hong Kong Securities and Investment Institute (HKSI) to separate the examination and courses for virtual asset platform practitioners, and to reduce the examination fees to align with the current Paper 2 and Paper 3 examination fees. The Hong Kong Securities and Futures Association also requested a clear distinction between technology services and regulated activities, and suggested that the SFC establish a clearer approval timetable and phased reference framework. (Sing Tao Daily)