Hong Kong and Singapore choose opposite ways of dealing with cryptocurrencies  

Two of Asia’s most progressive countries — Hong Kong and Singapore — which are also considered as the region’s financial hub, have already embraced cryptocurrencies. 

But according to Alessio Quaglini, chief executive officer of Hex Trust, while both nations haven’t resisted digital assets, they have different ways of regulating cryptocurrencies. 

“They have developed frameworks that are essentially an extension of the traditional securities frameworks but apply specifically to the complexities that blockchain assets can add to the picture,” Quaglini said.

Expanding crypto presence

Hex Trust, a Hong Kong-based crypto custodian, has recently expanded its operations to Singapore where the company has been granted a license to provide custodial services under the country’s City State Securities and Futures Act. 

When the Securities and Futures Commission created its initial regulatory framework for digital assets custodians, Hex Trust decided that it was also the best time to expand its operations to Singapore. 

Different approaches

One of the first differences between Hong Kong and Singapore’s take on cryptocurrencies is how they define virtual assets. In Hong Kong, cryptocurrencies are called “Virtual Assets” while in Singapore, they are called “Payment Tokens.” 

Their second difference is the bureaus that are authorized to regulate cryptocurrencies. In Hong Kong, the city’s central bank, the Hong Kong Monetary Authority, is the one that determines if virtual assets are considered money or not. While the Securities and Futures Commission (SFC), the city’s market regulator, makes rules about the trade of digital assets. 

In Singapore, the government has created a separate framework under the Monetary Authority of Singapore (MAS) to deal with the licensing requirements that should be implemented on companies that want to provide crypto services. 

Both countries, with their openness with cryptocurrencies, are expected to roll out more policies that would improve their infrastructures to better regulate cryptocurrencies and protect their citizens from extreme volatility at the same time. 

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/blockchain/hong-kong-and-singapore-choose-opposite-ways-of-dealing-with-cryptocurrencies/