The Hong Kong Securities Futures Fee (SFC) is about to launch tips for cryptocurrency alternate licensing in Could, because it strikes to help buying and selling providers to retail buyers from June 1. In line with Bloomberg, the plans had been confirmed by the SFC’s CEO, Julia Leung, who revealed that over 150 events had offered suggestions through the session course of on the licensing regime.
The upcoming tips will seemingly embrace regulatory necessities for Anti-Cash Laundering (AML) and Know Your Shopper (KYC) measures, amongst different concerns. A February 20 report by the SFC additionally highlighted these elements as necessary 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.
Nevertheless, not all buying and selling platforms have chosen to remain in Hong Kong amid its ambitions to turn out to be a serious crypto hub. Bitget, which boasts $1.4 trillion in property in reserve, introduced on April 24 that it will 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 tips is anticipated 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 below. This might assist to spice up investor confidence within the sector and help the town’s wider efforts to ascertain itself as a number one hub for digital property and blockchain know-how.
Hong Kong has already made vital strides on this space, with its Securities and Futures Fee turning into one of many first regulators to subject steerage on digital asset fund managers in November 2018. Town has additionally performed host to various high-profile crypto occasions in recent times, together with the Token2049 convention, which attracts blockchain business leaders from world wide.
Regardless of this progress, nevertheless, Hong Kong nonetheless faces stiff competitors from different international crypto hubs, corresponding to Singapore and Switzerland. By introducing clear licensing tips 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 area.
