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The Hong Kong Securities Futures Fee (SFC) is about to launch pointers for cryptocurrency change licensing in Might, because it strikes to help buying and selling providers to retail traders from June 1. In keeping with Bloomberg, the plans have 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 pointers will probably embody regulatory necessities for Anti-Cash Laundering (AML) and Know Your Shopper (KYC) measures, amongst different issues. A February 20 report by the SFC additionally highlighted these elements as essential 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, in line with Reuters.
Nonetheless, 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 could 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 anticipated to convey additional readability and regulation to the Hong Kong crypto market, whereas additionally offering a framework for authentic buying and selling platforms to function beneath. This might assist to spice up investor confidence within the sector and help town’s wider efforts to determine 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 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, nonetheless, 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 area.
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