The Hong Kong Securities and Futures Professional Association  (HKSFPA) has recommended the creation of an independent self-governing organization for crypto regulation among others.

In an April 22 release, the body tipped self-regulation for the securities and futures industry, asset management, and cryptocurrencies. According to the statement, to boost the overall economic capability of the region, a form of crypto self-regulation is needed. 

Comparing the proposal to other countries, the body added that jurisdictions that develop at a fast pace have some form of semi-official industry regulation to focus on development. 

“The Association has discovered that many economically developed regions in the world, including my country, have established statutory semi-official industry self-regulatory institutions to focus on industry development and maintenance of market ecology. Therefore, the Association believes that Hong Kong can refer to a similar approach…”

Potential Market Utility

Per the release, the body focuses on the development of market structure and crypto regulation. If a sector becomes partially self-regulatory, some flaws will be detected internally between companies before getting to the financial regulator giving it an all-round flavor.

Also, the financial regulator will not be overburdened making it function better to protect investors in the market. This will promote a healthy competitive ecology through multiple proposed models. The body rolled out four methods for authorities to throw more light. 

“The independent member self-regulatory organization model uses two methods to foster a competitive securities market: first, accelerate business focus, relieve some of the regulatory responsibilities of stock exchanges and regulatory agencies, make it more competitive, and promote securities trading can focus on business development..” 

Crypto Firms Involved in Regulation 

Stakeholders will be responsible for business conduct relating to adverts, a certain corporate governance level, and positioning the jurisdictions globally. In recent months, global regulators have ramped up efforts to protect investors with the increase of bad actors in the space. 

These regulations rolled out by authorities are sometimes described as market stifling but an approach driven by participants will aid the development of the sector. 

Also Read: Cardano Foundation Debut PRAGMA to Drive Open-Source Project Development 

The post Hong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am