Hong Kong and France are accelerating the process of crypto regulation while other countries are also making efforts to regulate the asset class on a regular basis.
The collapse of FTX prompted regulators around the world to speed up the management of this new asset class. While some countries want to put in place stricter regulations, others favor pro-crypto regulations.
French regulators are asking for a fast-track license for unregistered crypto service providers. At the same time, Hong Kong is committed to becoming a regional crypto hub with a strong regulatory framework.
France pushes for compulsory crypto license
The president of the Autorité des marchés financiers (AMF), Marie-Anne Barbat-Layani, supports a “rapid transition towards stricter supervision of the crypto industry”, according to Bloomberg.
The regulator wants tighten crypto regulations pushing unregistered CSPs to compulsorily obtain the license. The licensing system is currently optional.
Marie-Anne Barbat-Layani believes that licensing offers several more meaningful and detailed elements for investor protection.
This month, the bill to push compulsory licensing will be discussed in the lower house of parliament. Meanwhile, the French user indicates that some service providers have pending registration requests for more than a year.
Hong Kong vows to become a regional crypto hub
Paul Chan, Hong Kong’s financial secretary, says the country is trying hard to attract companies from the crypto and fintech sector. According to a Bloomberg articleHong Kong is committed to becoming a regional crypto hub.
Paul Chan said, “As one crypto exchange after another crashed, Hong Kong has emerged as a quality benchmark for digital asset firms. The city has a strong regulatory framework that meets international norms and standards while prohibiting free riders.
Hong Kong regulators are also willing to develop crypto trading retail investors, which are currently limited to those with more than $1 million in bankable assets.
Global steering of crypto regulation
Countries have prepared to implement crypto regulations with various goals, such as protecting investors’ capital and updating innovations.
The United Kingdom has set up a special program cryptographic cell under its National Crime Agency to combat crypto crimes. In December last year, the government has also announced plans to regulate a “wider range of investment-related crypto asset activities.”
The African country – Nigeria plans to regulate cryptocurrency keep up with global economic innovation. Nigeria has the third highest crypto transactions in the world, with 56% of its adult population participating in transactions.
BeInCrypto has reached out to a company or individual involved in the story for an official statement on recent developments, but has yet to receive a response.