Fictitious asset service deals by dovish superintend begin

Kick off in the week of science and technology of Hong Kong finance by last year day, the person that I announced money library bureau to be able to superintend fictitious asset service to offer (Virtual Asset Service Providers (VASPs) ) market of dealing system to inquire and consult. After period of to inquire and consult passes, we considered the opinion that gathers carefully, firm Yu Benzhou announced to inquire and consult to sum up. Fictitious asset in recent years quickness change makes many people stare tongue-tied, fluctuate considerably inside short time besides the price, close money is added on the international market (Cryptocurrencies) roll out like emerge, the person that also have creative work changes token character with be different from (Non-fungible Token) the number wears formal general artisticly to have authority sell. Somebody thinks fictitious asset is a castle in the air, transitory only, also the asset category that somebody thinks its have latent capacity to develop a kind to be able to last. I what do not have crystal ball cannot leave final conclusion temporarily, must stay wait for market practice to make judgement. Set out from the point of view that makes policy, the heaviest if superintend the need that reachs development evenly, protect investor interest to reach already prevent Geng to wash money and terrorist to plan market fund (Anti-Money Laundering And Counter-Terrorist Financing (AML/CTF) ) wait for a risk, the further progress that is in Hong Kong for financial innovation and fictitious capital market at the same time reachs flexibility between leave a blank beforehand. The dealing system as it happens that we suggest this reflected this one superintendency philosophy, collect so that the major opinion that come also expresses to support to this in process of to inquire and consult.

The risk that prevent Geng is run in order

Very much fictitious property with area piece catenary (Blockchain) for core technology, have go to a center changing reach faceless trading character, become the risk that washs money and terrorist to prepare market fund tool also because this is taller. The dealing system that suggests this is to consult financial operation is special organization (Financial Action Task Force) the of newest international mark that superintends fictitious asset to conclude, the VASPs beard that the requirement runs in Hong Kong can apply for license plate to card inspect, abide by apply to financial orgnaization to reach at present appoint blame banking industry to be in " blow washs money and terrorist capital to raise money byelaw " each requirement of next concerned AML/CTF, include a client to fulfil his duty to examine reach a record to save etc. In the meantime, because answer the uniqueness of fictitious asset and risk, the system also orders next concerned finance natural resources, knowledge and experience, business capital fund of perfect sex, risk management, client is separate the superintendency requirement such as management, ensure obtain dealing VASPs to have dovish management precondition, in order to safeguard investor interest. This shows Hong Kong adequately to regard system of banking of Xiao of guard of international banking center as dovish determination, wash money and the effort that fear financing system place making instead to strengthen blow continuously.

The opinion thinks to hold card VASPs besides serving professional investor, also should provide a service to retail investor permissibly. The risk that considering the Xuan of technology of fictitious asset backside miscellaneous sex, place involves and price fluctuation have not at traditional banking product, we think to roll out initial stage in dealing system at least, VASPs should serve professional investor permissibly only. In fact, add close currency value to fluctuate considerably recently, among them one of elements appear with early before the stock such as American GameStop is fried sell an activity likeness, suffer gregarious media to reach the congenial behavior such as the Tie Wen on the net to affect. Set out from the point of view that protects investor, in show level limitation to obtain dealing VASPs to be able to serve professional investor only, will can run in order for the market reach healthy progress to create a condition.

What need points out is, the name that adds close money and its essence and function actually not proportional. The legal money that it is not any countries and area already (Legal Tender/fiat Currency) , in harbor also unpopular be accepted reach to trade pay agency, investor must have correct acknowledge to this. In addition, the dealing system that suggests this also does not include the law of digital form to decide a money, the digital money that distributes by central bank for example.

Stay the space promotes development

The market condition change quickly of fictitious asset, its superintend a system to also must want to feeling stone to cross a river, stay certain space responds to future to need. Consider the definition of fictitious asset also may be changed somewhat in the future, the legal frame that suggests this will provide certain flexibility, can appoint by card inspect those who constitute fictitious asset is idiosyncratic. General affairs of finance and economics and director of library Wu bureau criterion but common ground or be aimed at specific situation, decide any digital form value (Digital Representation Of Value) should deny be limitted to be fictitious asset.

There is an opinion to think in process of this to inquire and consult, establish a company to apply for VASP license plate besides this locality of concessional Hong Kong outside, yi Yingta is wide cover Geng to farmland the company outside attracting the sea comes harbor, fictitious asset professional work is begun below the superintendency system that allows them to be in Hong Kong. We agree with this opinion, also see Hong Kong superintends an advantage to extend the good luck of the market with dovish finance, because this will revise a proposal, concessional already basis " company orders " those who register is abroad establish a company to apply for VASP license plate.

Summary: Possibility of future of dovish superintendency open

I thank the market that refers an opinion in process of this to inquire and consult and public personage heartily, also very glad that our proposal wins wide support. Concern this edit " blow washs money and terrorist capital to raise money byelaw " suggest to edit, besides covering VASPs dealing system, also include precious metal and gem to trade business registers system etc miscellaneous the technology edits. With today summary of second to inquire and consult is a foundation, we are editing related equipment byelaw draft, plan to refer legislative joint hearing to discuss at leaving a legislative year.

(above is general affairs of finance and economics and Xu Zhengyu of director of library Wu bureau 5Month 23Day is on the net column " money library is talked " published article)

(turn from network of news of Hong Kong government)