The Hong Kong Securities and Futures Commission (SFC) has stated that DeFi projects must pass regulatory clearances.
Hong Kong, one of the central locations of the Asian frenzy, has begun discussions on crypto regulations. Hong Kong’s regulator, the SFC, wants decentralized finance (DeFi) projects to be regulated. In addition, the regulator stated that if virtual assets are listed on centralized exchanges, they must apply for licenses.
Move from Hong Kong Regulator to DeFi Industry
The Hong Kong Securities and Futures Commission (SFC) accompanied the US move to DeFi.
Hong Kong’s regulator said on Wednesday that decentralized finance (DeFi) projects may pass licensing terms and regulations.
Keith Choy, SFC’s interim head of intermediaries, said DeFi projects will see the same regulations as traditional finance products as long as they fall under the Securities and Futures Regulations (SFO).
Speaking at an event he attended, Choy stated that DeFi could cause problems in financial stability and transparency. In addition, Choy underlined that this industry is pregnant with various abuses.
Also, another discourse of SFC was crypto projects on decentralized exchanges. SFC thinks that virtual assets in this space should also be licensed.
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