Cryptocurrencies are finally finding their place in the global financial scene. Cities like Hong Kong have been making progress in the same. As the value of these assets has been surging, people have been veering towards the crypto industry. More people diving into the market has definitely sparked up some hacks and scams. In order to keep this in control, the regulators of different countries have been putting into place new laws and amendments to the existing ones. Hong Kong seems to be heading in that direction.
Regulation Is A Must In Hong Kong Crypto Scene
The Securities and Futures Commission [SFC] of Hong Kong revealed that every crypto exchange in the purview of the city was subject to regulations. In a Fintech Week program that took place on Tuesday, Ashley Alder, the Chief Executive Officer of Hong Kong’s Securities and Futures Commission affirmed that crypto platforms functioning in the city of Hong Kong would be regulated even if they do not trade security tokens.
Elaborating on the same, Alder said in his speech,
“Under the current legislative framework if a platform operator is really determined to operate completely off the regulatory radar it can do so simply by ensuring that its traded crypto assets are not within the legal definition of a security.”
Last year, the SFC proposed that the crypto platforms were to voluntarily abide by the regulatory framework put forth by the financial watchdogs of the city. However, certain exchanges continued to steer away from this and engaged in operations without keeping in mind the regulations.
Furthermore, the SFC will be initiating a new program with regard to licensing of platforms keeping in mind anti-money laundering schemes. While this is still underway, platforms that aid cryptocurrency trading in the city would be monitored and regulated as soon as the regimes are out and about.
With news pertaining to breach of regulations from across the globe, several governments have been sprucing up their game. BitMEX and OKEx’s latest swim in troubled waters is proof enough that irrespective of their popularity exchanges must abide by rules and regulations. The Hong Kong financial watchdog made it clear that anyone that fails to register their platform or abide by the regulations would be categorized as offenders of the law.