Connect with us
Active Currencies 14902
Market Cap $2,222,167,847,958.90
Bitcoin Share 50.91%
24h Market Cap Change $-2.16

Hong Kong to subject crypto exchanges to the same laws governing TradFi

2min Read
Hong Kong to subject crypto exchanges to the same laws governing TradFi

Share this article

The legislative council of Hong Kong has amended its anti-money laundering (AML) and counter-terrorist financing (CFT) financing system to include virtual/crypto asset service providers.

The legislation will create a new licensing regime for crypto asset service providers, which will go into effect on 1 June 2023. The new amendment will subject crypto exchange service providers to the same legislation that traditional financial institutions are subject to.

The development implies that crypto exchanges seeking to open a business in Hong Kong will have to follow strict AML/CFT guidelines and investor protection laws before receiving a license to operate. Unlike most other regulators around the world, Hong Kong used the FTX collapse to reduce regulatory risks associated with centralized exchanges.

There is an increasing call to bring cryptocurrency exchanges and service providers under the jurisdiction of the law and subject them to stringent AML and investor protection requirements. Regulators from around the world have come under fire for failing to protect retail investors in the aftermath of FTX’s demise.

Can Hong Kong become the next crypto center?

Eddie Yue, Hong Kong Monetary Authority CEO recently hinted at possible investor protection regulations coming soon to the region. The recent amendment has propelled the nation to become the first mover on the pressing issue of investor protection.

Hong Kong has been actively working to lay a solid regulatory foundation for the nascent crypto market. The regulator is also considering allowing retail investors to invest in crypto-related exchange-traded funds (ETFs).

In October, the Hong Kong government published a policy proposing a regulatory framework and risk-based regulatory direction under the “Policy Declaration on the Development of Virtual Assets.”

The government has proposed a number of pilot projects to evaluate and improve the underlying technologies of virtual assets. The city government also intends to embrace emerging technologies such as NFTs and metaverse, with the goal of transforming Hong Kong into an international virtual asset center.

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.