Zephyrnet Logo

Hong Kong to Introduce Licensing for Crypto Platforms Through AML Law – Regulation Bitcoin News

Date:

New laws tailor-made to manage the crypto area in Hong Kong goals to implement a licensing regime for crypto service suppliers. The respective adjustments to the area’s anti-money laundering (AML) guidelines have been submitted to its legislature whereas a not too long ago revealed report examines related threats.

Hong Kong Lawmakers to Review Bill Aligning Crypto Sector With Financial Industry

Amendments designed to control the cryptocurrency market in Hong Kong have been introduced to the members of the Legislative Council of China’s particular administrative area. The Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022, which was revealed within the authorities gazette in June, wants their approval in two readings to change into regulation.

The authors of draft search to introduce licensing for digital asset service suppliers (VASPs) and registration for sellers in treasured metals and stones (DPMS). The objective is to impose anti-money laundering and counter-terrorist financing obligations on the companies working within the two sectors.

Entities working with cryptocurrencies that wish to launch a trading platform, for instance, must acquire a license from the Hong Kong Securities and Futures Commission (SFC) and fulfill a lot of necessities. The proposal takes under consideration the suggestions of the Financial Action Task Force on Money Laundering (FATF) which units the worldwide requirements within the discipline.

The new necessities for VASPs are comparable to people who apply to conventional establishments within the monetary providers sector they usually must meet related monetary adequacy necessities, Andrew Leelarthaepin, crypto alternate Bitstamp’s managing director for Asia Pacific, famous in article revealed by the South China Morning Post. In his opinion, that acknowledges crypto corporations as a element of Hong Kong’s monetary system. The govt elaborated:

Put merely, VASPs can count on to be regulated to the identical commonplace as our institutional purchasers. The regulation acknowledges VASPs as peer organizations throughout the monetary providers sector.

Under the upcoming laws, the SFC will even be accountable to make sure that digital asset service suppliers undertake correct itemizing and trading insurance policies in addition to monetary reporting and disclosure procedures. The Commission will even observe the implementation of mechanisms designed to stop market manipulation and conflicts of curiosity.

As legislators put together to approve the brand new regulatory framework, the latest edition of Hong Kong’s Money Laundering and Terrorist Financing Risk Assessment Report has paid specific consideration to the threats and vulnerabilities within the crypto area. While acknowledging their potentials and growing reputation, the doc additionally highlights the vulnerability of digital belongings to varied dangers and the challenges they pose for investor protection.

Tags on this story
ACT, amendments, AML, bill, Changes, Crypto, crypto exchanges, Cryptocurrencies, Cryptocurrency, CTF, draft law, Hong Kong, Law, Money Laundering, Regulation, Regulations, requirements, rules, service providers, Standards, VASPs, virtual assets

How do you assume will the brand new laws have an effect on the crypto trade in Hong Kong? Share your expectations within the feedback part under.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, worldwide politics and economics are two different sources of inspiration.




Image Credits: Shutterstock, Pixabay, Wiki Commons, Lee Yiu Tung

Disclaimer: This article is for informational functions solely. It is just not a direct supply or solicitation of a suggestion to purchase or promote, or a suggestion or endorsement of any merchandise, providers, or corporations. Bitcoin.com doesn’t present funding, tax, authorized, or accounting recommendation. Neither the corporate nor the writer is accountable, instantly or not directly, for any injury or loss prompted or alleged to be brought on by or in reference to using or reliance on any content material, items or providers talked about on this article.

spot_img

Latest Intelligence

spot_img