The Hong Kong Stock Exchange (HKEX) brought up an idea in which the legal frameworks around finance and cryptos should be same.
Many countries are facing this problem of deciding regulations to blockchain and cryptocurrency. The Hong Kong Stock Exchange came up with a solution that says that any fintech firm, which deals with traditional or cryptocurrency should be handled with the present financial regulations.
As per the research reports published on October 18th, the stock exchange looks at the requirements for regulators in order to keep momentum with the financial technologies. And in a situation where they lag behind, then they should be dealing with the existing laws of finance. For example, Blockchain can be brought inside the space of investment, clearing, and settlement.
The HKEX said in a statement that despite the difference in the regulations of Fintech among various countries, the financial services with a common nature are to be assigned to the same regulations which are under the legal framework. This is done to maintain a healthy competition and to ensure regulatory effectiveness.
However, this nowhere implies that the decision would be concern less. The regulations need to undergo constant changes in order to keep up with the technologies.
The author of the reports added that the fun raising shares activities delivered by issuers must be corrected by securities law of the governance.
The report came almost the same time when the new rules are published by the Financial Action Taskforce (FATF) for international currency regulation. The regulations without going into effect until June 2019 would ensure that the country willing to be a part would be required licensed entities for the Initial Coin Offerings.
Earlier this year in March, in order to learn about the migration of ASX to a blockchain settlement system, there was a discussion held between HKEX and the Australian Securities Exchange (ASX).