Regulation
Hong Kong Regulator Highlights Crypto Platforms Registration Deadline
Hong Kong’s financial regulator has highlighted the non-infringement period for virtual asset trading platforms (VATPs) to register before the deadline. The Securities and Futures Commission (SFC) noted that the timetable for platforms operating under the Anti-Money Laundering and Terrorist Financing Ordinance (AMLO) will end on June 1. The Commission reminded investors and stakeholders of the risks and implications of non-financing registration after the deadline.
Failure to register is a criminal offence
In an announcement on May 28, the regulator highlighted that a violation of AMLO is a criminal offense resulting in
SFC take appropriate action against the offender. According to the statement, all companies operating in Hong Kong must be registered or “deemed to be licensed” under the law.
That said, investors are advised to only trade with SFC-licensed companies and confirm company status from the website. For companies deemed to be licensed, the SFC warned that they have not yet been licensed. However, they operated before the legal regime and committed to improving certain policies and structures.
For their part, the VAP considered authorized must comply with all guidelines. These businesses are not expected to acquire new retail customers until the guidelines are met. According to the statement, companies must comply with the guidelines and prevent mainland Chinese residents from using the services.
“…including, but not limited to, preventing residents of Mainland China from accessing any of their virtual asset-related services and taking all necessary measures to persuade VATPs’ parent entities and related parties to do the same.”
Hong Kong tightens cryptocurrency regulation
Hong Kong regulators have increased scrutiny of cryptocurrencies in recent months, citing investor protection to prevent market collapse. The country has published a series of guidelines to regulate the cryptocurrency market. The jurisdiction considered crypto-friendly has seen a change in the regulatory framework with some analysts suggesting a future change in mainland China.
Global cryptocurrency regulation takes shape as authorities seek clear rules for cryptocurrency businesses and users. From the Markets in Crypto Assets reference point (Not) regulation, legislators try to tighten the rules.
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David is a financial news contributor with 4 years of experience in Blockchain technology and cryptocurrencies. He is interested in learning about emerging technologies and has an eye for the latest news. Staying up to date on trends, David has reported in several niches including regulation, partnerships, cryptocurrencies, stocks, NFTs, etc. Away from the financial markets, David cycles and rides horses.