Decentralized finance (DeFi) initiatives are regulated by the Hong Kong regulator; the Securities and Futures Commission (SFC) has identified DeFi as a field that requires regulation. DeFi activity is within the authority of the SFO and is subject to the same regulatory requirements as conventional financial activity, according to Choy, interim head of intermediaries at the SFC. He also emphasized worries about investor protection and market integrity issues including price oracle manipulation. The SFC warned investors of the hazards connected with virtual asset platforms in a statement released in December 2022, and Hong Kong’s new licensing system for virtual asset trading platforms goes into effect in June 2023.
The Group of Seven (G-7) wealthy nations will give priority to how they can better assist developing countries implement their central bank digital currencies (CBDCs), according to senior finance diplomat Masato Kanda of Japan. He thinks that the dangers associated with the establishment of CBDCs must be addressed by the Vice Minister of Finance for Foreign Affairs of Japan by providing elements like proper transparency and solid governance. Japan is slated to host the G-7 summit this year in Hiroshima, where debates about cryptocurrency regulation are anticipated to pick up speed before a gathering of the G-07 countries’ finance ministers and central bankers in mid-May. Additionally, he intends to tighten up worldwide cryptocurrency rules, with an emphasis on enhancing company transparency and consumer safety.