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, AtoZMarkets – SFC 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.”
WOW this is BIG— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) November 6, 2019
Hongkong SEC will announce detail in abt an hour regarding cryptocurrency exchange application criteria 😳😳😳
Considering Huobi has already backdoor listed on HKex, this will def play them a huge favor to be the first legalized Chinese crypto 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.
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.
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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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