Hong Kong and France speed up the crypto regulation process while other countries also steadily move to regulate the asset class.
The FTX collapse has pressured regulators globally to speed up on how to deal with this new asset class. While some countries want to implement tighter regulations, others favor pro-crypto regulations.
The France regulators are calling for an accelerated licensing of unregistered crypto service providers. At the same time, Hong Kong commits to becoming a regional crypto hub with a robust regulatory framework.
France Pushes for Mandatory Crypto Licensing
The Financial Markets Authority (AMF) chair, Marie-Anne Barbat-Layani, supports a “swift transition to a more stringent oversight of the crypto industry,” according to Bloomberg.
The Regulatory body wants to tighten crypto regulation by pushing the unregistered crypto service providers to obtain the license mandatorily. The licensing system presently is optional.
Marie-Anne Barbat-Layani believes that licensing offers several more significant and detailed elements for the protection of investors.
This month, the bill to push mandatory licensing will be discussed in the Lower Chamber of Parliament. Meanwhile, the French user states that some service providers have had pending registration requests for more than a year.
Hong Kong Commits to Become a Regional Crypto Hub
Paul Chan, the Financial Secretary of Hong Kong, says that the country is working to attract businesses in the sector of crypto and Fintech. According to a Bloomberg article, Hong Kong is committed to becoming a regional crypto hub.
Paul Chan says, “As certain crypto exchanges collapsed one after another, Hong Kong became a quality standing point for digital asset corporates. The city has a robust regulatory framework that matches international norms and standards while prohibiting free-riders.”
The Hong Kong Regulatory Authorities are also willing to expand crypto trading to retail investors, which currently limits to those with $1 million+ bankable assets.
Global Crypto Regulation Drive
Countries have geared up to implement crypto regulation with various goals, such as protecting investors’ capital and staying up to date with innovations.
The UK has established a special crypto cell under its National Crime Agency to fight crypto crimes. In December last year, the government also announced plans to bring a “broader range of investment-related crypto assets activities into regulation.”
The African country – Nigeria plans to regulate cryptocurrency to flow with global economic innovation. Nigeria has the third highest crypto transactions in the world, with 56% of its adult population participating in the transactions.
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