The Hong Kong Securities and Futures Commission (SFC) plans to introduce regulation of all cryptocurrency exchanges in the city, including those that do not provide stock token trading services.
Ashley Alder, CEO of Hong Kong regulator, spoke about this at the Fintech Week conference. This step was a continuation of the regulator’s policy. Last year, the SFC urged crypto exchanges operating in Hong Kong to register with the regulator if they “offer trading at least one share token.”
At the same time, according to Alder, some sites decided not to register their activities. The new requirement should ensure better compliance of cryptocurrency exchanges with the requirements of the anti-money laundering law.
“With the introduction of the new rules, all virtual asset trading platforms in Hong Kong will be regulated, monitored and monitored. There will be two options for oversight: under last year’s registration rules, or under the new approach to licensing presented today. Failure to comply with licensing requirements will be regarded as a crime, ”the head of the SFC emphasized.
Currently, several major cryptocurrency exchanges that have moved from China are based in Hong Kong, including Huobi, OKEx and BitMEX.
According to The Block, the United States remains the most popular jurisdiction for cryptocurrency companies providing trading services to institutional clients.