Hong Kong Announces Supervisory Incubator to Help Banks Safely Test Blockchain Technology

The HKMA's new incubator will focus on helping banks try risk management capabilities around deposits and loan services.

Advertisement
Written by Radhika Parashar, Edited by David Delima | Updated: 9 January 2025 16:29 IST
Highlights
  • Hong Kong is currently working around its crypto laws
  • The HKMA is looking to foster blockchain exploration
  • Hong Kong has set up a subcommittee to oversee crypto rules drafting
Hong Kong Announces Supervisory Incubator to Help Banks Safely Test Blockchain Technology

The HKMA announced this incubator during HKMA’s FiNETech4 event

Photo Credit: Unsplash/ Annie Spratt

The Hong Kong Monetary Authority (HKMA) has established a ‘Supervisory Incubator' that will help banks develop and test the use cases of the distributed ledger technology (DLT). The initiative was announced on Wednesday, during the FiNETech4 event organised by the HKMA. The emergence of Web3 and its potential offerings to the global financial services was among the subjects of discussions in the event. The newly formed body will focus on helping banks try risk management capabilities around deposits and loan services. The practice of tokenised deposits will be the core area of focus for the incubator, the HKMA said.

The HKMA announced the creation of the new incubator in the presence of over 300 professionals from the banking, insurance, and provident fund sectors.

Commenting on the launch, HKMA's Deputy Chief Executive, Arthur Yuen said, “The Supervisory Incubator for DLT is a key component of our strategy to foster the development of DLT-based banking solutions that are safe, efficient, and beneficial to the industry and the wider community.”

How the HKMA's Incubator Works

Hong Kong's banks will effectively have a direct line of communication with regulators via this platform. The incubator will give banks quick access to a team of HKMA officials, for feedback on the risk management solutions they develop before a wider launch.

Advertisement

The platform has also been tasked with promote industry-wide awareness around blockchain-based risk management solutions. Initiatives such as industry sharing sessions and inception of futuristic research projects will also be introduced under the incubator's oversight.

Hong Kong's Stance on Web3

Hong Kong emerged as the most ‘crypto ready' region, in Forex Suggest's ‘Worldwide Crypto Readiness Report'. Presently, Hong Kong does not have a comprehensive set of guidelines to govern its crypto sector. The trading, purchasing, and holding of cryptocurrencies is not prohibited.

Advertisement

Last April, Hong Kong approved Bitcoin and Ether spot ETFs in a landmark decision that allowed traders of traditional stocks to experimenting with crypto trading without having to directly engage with the infamously volatile assets.

Advertisement

A feew months later, Hong Kong also established a new subcommittee, dedicated to drafting detailed crypto laws.

 

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Advertisement

Related Stories

Popular Mobile Brands
  1. Nothing Phone 3a Pro 5G Long Term Review: A Blend of Style, Speed, and Power
  2. Nothing Phone 3 Full Specifications Surface Ahead of Its July 1 Debut
  3. Vivo X200 FE Compact Smartphone Launched With 6,500mAh Battery
  4. Kubera OTT Release Reportedly Revealed: Where to Watch Dhanush Starrer Movie Online?
  5. AI+ Pulse, AI+ Nova 5G India Launch Timeline, Design and Colours Revealed
  6. Amazon Diagnostics Service Launched in These 6 Cities in India
  7. Samsung Exynos 2500 SoC Unveiled Ahead of Next Galaxy Unpacked Event
  8. Apple Updates iPhone, iPad Pages With These Labels to Comply With EU Rules
  1. Samsung Exynos 2500 SoC With Up to 15 Percent Improved CPU Performance, Xclipse 950 GPU Launched
  2. Vivo X200 FE With 6,500mAh Battery, MediaTek Dimensity 9300+ SoC Launched: Specifications
  3. Tecno Spark Go 2 India Launch Date Set for June 24; Key Features, Colourways Teased
  4. Amazon Diagnostics Launched in India, Offers Doorstep Sample Collection in Six Cities
  5. Honor Magic V5 Teased to Measure 8.8mm Thick; Colours, RAM and Storage Details Revealed
  6. Apple Reportedly in Talks to Acquire Perplexity AI to Strengthen Its Artificial Intelligence Efforts
  7. AI+ Pulse, AI+ Nova 5G Confirmed to Launch in India in July; Design, Colour Options Revealed
  8. iPhone, iPad Pages Updated With Energy Labels to Comply With New EU Regulations
  9. China’s Restrictions on Rare Earth Mineral Exports to Reportedly Adversely Impact Supply Chain Jobs in India
  10. Boat Airdopes Prime 701 ANC With Up to 50 Hours Total Playback Time Launched in India: Price, Features
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.