The Hong Kong Securities and Futures Commission (SFC) plans to create a consultative panel for licensed cryptocurrency exchanges in 2025, according to Executive Director Eric Yip. This panel will include representatives from each licensed exchange, aiming to enhance community transparency and shared responsibility among licensees. The initiative will produce a comprehensive virtual assets white paper detailing a development roadmap for crypto products, compliance enhancements, and risk management. Hong Kong's efforts are part of establishing a robust regulatory framework for digital assets, which includes recent licensing regimes for virtual asset trading platforms. At present, three exchanges are licensed, with 14 more applications under review. Yip highlighted the need for regulatory measures to protect investors amidst rising fraud, noting HK$1.5 billion ($193 million) lost to investment fraud in the first half of 2024. He underscored the importance of a regulated marketplace for virtual assets while acknowledging challenges in attracting exchanges to obtain licenses amid competition from unregulated platforms.

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