Hong Kong Framework

Definition ∞ The Hong Kong Framework refers to the specific regulatory guidelines and licensing regimes established by Hong Kong authorities for virtual asset service providers and other digital asset activities. This framework aims to provide a clear legal and operational environment for crypto businesses while addressing investor protection and financial stability concerns. It reflects Hong Kong’s approach to integrating digital assets into its financial system.
Context ∞ News often highlights the Hong Kong Framework as an example of a jurisdiction attempting to establish a comprehensive and pragmatic regulatory environment for digital assets. Discussions center on its potential to attract crypto businesses and foster innovation, contrasting with more restrictive approaches elsewhere. Its ongoing evolution and implementation are closely watched by the global digital asset community as a model for regulatory clarity.