Crypto Exchange Financial Regulations Are Coming In Hong Kong

Crypto exchange financial regulations are approaching Hong Kong for improved governing of the operations of crypto exchanges. In the meantime, the reports show that fund managers are still struggling with the harsh requirements for crypto investment in Hong Kong as we reported earlier in the latest cryptocurrency news.

According to Reuters, the Securities and Futures Commission (SFC) of Hong Kong, is ready to introduce a regulatory framework for crypto exchanges and while speaking at a fintech conference on Wednesday in Hong Kong, Ashley Alder, the head of the SFC stated:

‘’The framework will enable virtual asset trading platforms to be regulated by the SFC, a major development which builds on a way forward I outlined at the same time last year.’’

Last year, the crypto exchange financial regulations were not even a discussion despite the exchanges being in increased regulatory surveillance. At that time, the SFC revealed that it was developing a new approach to overlook the activities of the local crypto exchange platforms. According to Adler, the new regulatory framework will mostly focus on Know Your customer and custody requirements for the exchanges. This could pave the way for the emergence of formally legalized crypto exchanges in the city.

Tweeting back on Wednesday, the Primitive Ventures co-founder and crypto insider Dovey Wan, remarked that the upcoming regulatory wave could see the likes of Huobi becoming the first legalized Chinese crypto exchange. With the emergence of regularized exchanges, the laws will also improve the stance that Hong Kong has on regulating rather than banning crypto trading. As previously reported, the former head of the SFC Carlson Tong Ka-Shing, stated that a ban on crypto trading would not work.

Similarly to the ICOs, crypto trading is banned in mainland China and many of the crypto exchanges are forced to move outside of the country. Regulated crypto trading in Hong Kong will represent the departure from the policies operating in the country. While Hong Kong seems to be moving forward with the exchange laws, virtual currency regulations are not having its desired effect. Back in 2018, the SFC introduced a licensing scheme for the crypto fund managers but still, the report show that they are struggling to satisfy the requirements so they can freely invest in cryptocurrencies.