The Hong Kong and Saudi Arabia central banks signed an MoU to study financial innovation to benefit their local economies, focusing on four sectors, including open market operations and market connectivity.
The move, which began on July 18, follows the launch of a digital yuan shopping festival organized by the Bank of China (Hong Kong) Limited to promote the international usage of the CBDC.
The newly minted task force involves key players from the government, private sector, and professionals from academia as they collaborate to promote the "megatrend" of Web3.
Data shows between $2.55 million and $25.5 million are being shelled out by Web3 firms looking to get a license to operate in Hong Kong, with much of the budget exhausted for salaries of ROs.
The securities chief says the collapse of FTX entrenched the agency’s belief that ‘crypto’ trading must be regulated stringently as Hong Kong attracts VASPs.
The CBDC pilot initiative hit a road bump following several user complaints, including the limited number of merchants accepting the digital yuan and the lack of expertise in operating the system.
Apart from its welcoming stance on digital currencies, Web3 startups looking to set up tents in Hong Kong also consider the region's property situation and the state of cross-border data flow.
To become the global ‘crypto’ hub, Hong Kong is pushing the three largest banks in the city-state—along with Bank of China—to take on digital asset clients.
Hong Kong’s Undersecretary for Financial Services and the Treasury, Joseph Chan Ho-lim, said the public consultation will form the basis of a new stablecoin framework by 2024.
Angelina Kwan, CEO of Stratford Finance and former Hong Kong SFC regulator, hinted that the new rules for digital exchanges might see China reverse its blanket ban on digital currencies.
The central banks of the UAE and Hong Kong forge closer ties in regulating digital assets as part of their plans to improve the existing financial market and regional connectivity.
Hong Kong lost $217 million to BTC scams in 2022 and it’s now exploring creative solutions, including a metaverse platform that will educate the public about Web3.
