Hong Kong’s financial regulator has introduced a new scheme, “ASPIRe,” in an attempt to establish the city as a leader in the world of cryptocurrency.
What is the ASPIRe Roadmap?
On February 19, the Hong Kong Securities and Futures Commission launched the ASPIRe plan. The aim is to encourage Hong Kong’s virtual asset market and tackle main issues like low market liquidity, unclear regulation, and crypto price volatility.
The method is rooted in five central pillars:
Access – Enabling firms to enter the market more freely.
Safeguards – Strengthening compliance without stifling growth.
Products – Increased crypto investment options.
Infrastructure – Improving blockchain systems and regulation.
Relationships – Establishing trust and honest communication with the public and companies.
The SFC said the scheme will make Hong Kong a safe and reliable platform for the trading of digital assets.
Large Investors are Becoming Increasingly Interested
The SFC pointed out that large banks are increasingly active in crypto. But the various regulations in the United States, Europe, Singapore, and China make it difficult for businesses.
As crypto and traditional finance (TradFi) are converging, the SFC feels that this is the perfect time to introduce robust financial regulations to crypto and use blockchain to enhance traditional finance.
Shifting the Rules to Drive Innovation
The SFC also requested that regulators revisit existing financial regulations to provide space for new offerings of crypto such as tokenized securities. They expressed the importance of creating a balance between innovation and strong regulation.
Also, Hong Kong’s financial secretary, Paul Chan Mo-po, promised the city will continue to be optimistic for digital assets. He also stated that Hong Kong is heavily investing in crypto infrastructure and human capital to help fulfill its vision.
