The Hong Kong Securities Futures Fee (SFC) is ready to launch tips for cryptocurrency trade licensing in Could, because it strikes to help buying and selling providers to retail traders from June 1. In keeping with Bloomberg, the plans had been confirmed by the SFC’s CEO, Julia Leung, who revealed that over 150 events had offered suggestions in the course of the session course of on the licensing regime.
The upcoming tips will possible embrace regulatory necessities for Anti-Cash Laundering (AML) and Know Your Consumer (KYC) measures, amongst different issues. A February 20 report by the SFC additionally highlighted these elements as necessary for regulating digital belongings.
Whereas most potential Digital Asset Service Supplier (VASP) licensees are nonetheless awaiting affirmation, some buying and selling platforms have already obtained 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 develop into a serious crypto hub. Bitget, which boasts $1.4 trillion in belongings in reserve, introduced on April 24 that it will stop providing providers to its Hong Kong prospects when the VASP regime takes impact on June 1.
Regardless of this setback, the discharge of the licensing tips is anticipated to carry additional readability and regulation to the Hong Kong crypto market, whereas additionally offering a framework for reliable buying and selling platforms to function beneath. 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 belongings and blockchain expertise.
Hong Kong has already made vital strides on this space, with its Securities and Futures Fee changing into one of many first regulators to concern steerage on digital asset fund managers in November 2018. Town has additionally performed host to plenty of high-profile crypto occasions lately, together with the Token2049 convention, which attracts blockchain trade leaders from all over the world.
Regardless of this progress, nonetheless, Hong Kong nonetheless faces stiff competitors from different international crypto hubs, resembling Singapore and Switzerland. By introducing clear licensing tips and regulatory necessities for crypto buying and selling platforms, the SFC might be able to assist Hong Kong strengthen its place on this more and more aggressive discipline.