Authorization

Hong Kong says it may regulate crypto exchanges

Hong Kong may become the next country to regulate crypto exchanges after its securities regulator announced that it is exploring ways to apply quality control and protectconsumers from the volatility and uncertainties of digital currencies.
The Securities and Futures Commission (SFC) saidit is setting out a conceptual framework that could be used to regulate crypto exchanges since they currently operate outside of current regulation, which is focused on traditional investment.
Some of the worlds largest virtual asset trading platforms have been seen operating in Hong Kong but they fall outside the regulatory remit of the SFC and any other regulators. Owing to the serious investor protection issues identified and having regard to international developments, the SFC considers it necessary to explore in earnest whether and if so, how it could regulate virtual asset trading platforms under its existing powers, the SFC wrote.
The commission has said it intends to work with the industry itself to define what regulation should look like.
The SFC did hedge its move, however, by saying that there is no guarantee that it will introduce licenses at the end of its research period.In particular, it voiced concern as to whether exchangeswould satisfy the expected anti-money laundering standards, given that anonymity is the core feature of blockchain.
Theres also no immediate sign that Hong Kong will be requiring exchanges to be licensed.
Those exchanges that want to be regulated by us will be set apart from those that dont, SFC CEO Ashley Alder told a conference according to a report from Reuters.
Japan is best known in crypto circles for its introduction of exchange licensing. Some in the industry have criticized the Japanese regulations as being too tight. Those voices include Binance, the worlds largest trading of cryptocurrencies, which abandoned plans to seek regulation in Japan because it placed limits on which tokens can be offered to users, its CEOChangpeng Zhao previously told TechCrunch.

Hong Kong plans TV ad campaign to warn against ICO and crypto investments
See also:
Leave a comment
News
  • Latest
  • Read
  • Commented
Calendar Content
«     2019    »
 12
3456789
10111213141516
17181920212223
24252627282930