The Hong Kong Securities Futures Fee (SFC) is about to launch pointers for cryptocurrency change licensing in Could, because it strikes to assist buying and selling providers to retail buyers from June 1. Based on Bloomberg, the plans had been confirmed by the SFC’s CEO, Julia Leung, who revealed that over 150 events had offered suggestions throughout the session course of on the licensing regime.
The upcoming pointers will doubtless embody regulatory necessities for Anti-Cash Laundering (AML) and Know Your Consumer (KYC) measures, amongst different concerns. A February 20 report by the SFC additionally highlighted these components as vital for regulating digital property.
Whereas most potential Digital Asset Service Supplier (VASP) licensees are nonetheless awaiting affirmation, some buying and selling platforms have already acquired licenses from the SFC. Amongst them are OSL and Hashkey Group, based on Reuters.
Nonetheless, not all buying and selling platforms have chosen to remain in Hong Kong amid its ambitions to grow to be a serious crypto hub. Bitget, which boasts $1.4 trillion in property in reserve, introduced on April 24 that it might stop providing providers to its Hong Kong clients when the VASP regime takes impact on June 1.
Regardless of this setback, the discharge of the licensing pointers is predicted to convey additional readability and regulation to the Hong Kong crypto market, whereas additionally offering a framework for respectable buying and selling platforms to function underneath. This might assist to spice up investor confidence within the sector and assist town’s wider efforts to ascertain itself as a number one hub for digital property and blockchain expertise.
Hong Kong has already made important strides on this space, with its Securities and Futures Fee changing into one of many first regulators to challenge steering on digital asset fund managers in November 2018. The town has additionally performed host to a variety of high-profile crypto occasions in recent times, together with the Token2049 convention, which attracts blockchain trade leaders from around the globe.
Regardless of this progress, nevertheless, Hong Kong nonetheless faces stiff competitors from different world crypto hubs, akin to Singapore and Switzerland. By introducing clear licensing pointers and regulatory necessities for crypto buying and selling platforms, the SFC could possibly assist Hong Kong strengthen its place on this more and more aggressive discipline.
