Cryptocurrency regulation in Hong Kong is present process adjustments. The Securities and Futures Fee (SFC) is reportedly introducing a brand new licensing system to manage all crypto exchanges working in Hong Kong.
Hong Kong’s New Crypto Regulation
The CEO of the SFC, Ashley Alder, talked about implementing a brand new cryptocurrency regulatory framework at Hong Kong Fintech Week on Tuesday.
All cryptocurrency buying and selling platforms working in Hong Kong or focusing on native buyers will likely be required to use for a license with the SFC, Radio Tv Hong Kong (RTHK) reported. “Later as we speak, the federal government will suggest a brand new licensing regime underneath the Anti-Cash Laundering Ordinance for platforms which commerce any kind of crypto asset even when not categorised as securities,” Alder was quoted as saying.
The SFC launched an opt-in regulatory framework for crypto exchanges in November final 12 months. Nevertheless, it solely applies to platforms that supply at the very least one cryptocurrency that falls underneath the authorized definition of securities.
Alder famous that the present regulatory system has critical limitations, making it attainable for some buying and selling platforms to function away from the purview of the regulator. “If a platform operator is basically decided to stay utterly off the regulatory radar, it might probably achieve this just by guaranteeing that its traded crypto property are usually not inside the authorized definition of a safety,” he defined.
Many cryptocurrency exchanges function in Hong Kong however they select to not apply for a license, which is feasible underneath the present system. In line with Reuters, the SFC has not issued a full license to any change so far, however it has agreed in precept to concern a license to OSL Digital Securities, a cryptocurrency arm of Constancy-backed BC group. Alder elaborated:
As soon as this new regime is in place, all digital asset buying and selling platforms in Hong Kong could be regulated, supervised and monitored.
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