Recent happenings in the world of crypto have left everyone on edge. Cases involving the Lazarus Group have instilled fear in all countries that are dabbling in crypto assets. One such nation is China. Its revised stance on crypto can bring major upheaval in the landscape.
Hong Kong, a special administrative province of China, has decided to revise its stance on crypto. The Securities and Futures Commission of Hong Kong, or SFC Hong Kong, just released an all-new regulatory guidance for Virtual Asset Funds and Virtual Asset Trading Platforms.
Waves Of Changes
Sources confirm that these changes are primarily related to staking services and their general provision of functioning. The state has recently conducted studies and found that staking enhances blockchain security. Moreover, these staking also allow investors to earn yields.
This outline will allow the Hong Kong SFC to protect users’ rights and still make crypto a legitimate asset. SFC CEO Julia Leung understands the need for a flexible regulatory body and security simultaneously.
Therefore, SFC’s primary concern at the moment is to create a conducive landscape for crypto that allows for innovation but does not turn an absolute blind eye. This means striking a semblance and balance that can allow for structured growth.
