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Cryptocurrency

Hong Kong to Publish Crypto Exchange Regulations

Cryptocurrency
Hong Kong to Publish Crypto Exchange Regulations

The Securities and Futures Commission (SFC) will introduce a new set of Hong Kong Crypto Exchange Regulations. Meanwhile, fund managers continue to struggle with the stringent requirements for crypto investment in Hong Kong.

06 November 2019, AtoZMarketsSFC of Hong Kong is ready to introduce a regulatory framework for cryptocurrency trading in the city. Chief Executive Ashley Alder today announce the news at a local Fintech event. This framework will allow the virtual asset trading platforms to regulate by the SFC. A significant development that is an extension of the path he described at the same time last year. In 2018, cryptocurrency trading in Hong Kong was subject to increased regulatory oversight. At the time, the SFC told that it was developing a new approach to supervising the activities of local crypto exchange platforms.

Hong Kong Crypto Exchange Regulations 

According to Alder, the new regulations will focus on KYC (Know Your Customer) and custody requirements for cryptocurrency trading. Such progress could pave the way for the emergence of an official legalized cryptocurrency exchange listings in the city.

The co-founder of Primitive Ventures and Chinese crypto insider, Dovey Wan tweeted on Wednesday that the new regulations could make Huobi the first “legalized Chinese cryptocurrency exchange.”

The development of regularized cryptocurrency exchange laws will also strengthen Hong Kong’s position on regulation. That is rather than banning the trade in crypto. Former SFC head Carlson Tong Ka-shing once said that a ban on crypto trading would not work.

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Like the ICOs, crypto trading is still banned in mainland China. And many platforms left the country. The regulated trade in crypto in Hong Kong will be another change from the policies in mainland China.

Read More: SFC issues CircleForex warning

Fund Managers Are Still Struggling 

The city seems to be moving ahead with crypto exchange laws. Yet, another virtual currency regulation is not yet having the desired effect. In 2018, the SFC set up a licensing system for crypto fund managers.

However, the reports suggest that a year later, fund managers are still struggling to meet regulatory requirements that essential to invest in cryptocurrencies. Some commentators say that despite the initial enthusiasm for the SFC’s decision, there has not been much progress for fund managers to obtain the necessary approvals.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.

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