Asia is presently one amongst the foremost regulated continents in terms of cryptocurrency laws. Hong Kong is the latest country that’s set to tighten crypto regulations on traders and exchanges. The Hong Kong SFC [Securities and Exchanges Commission] is looking into tightening the existing cryptocurrency laws as issues over crypto-crime and money laundering are on a hike across South-East Asia.
Strict Crypto Laws Implementation May Arrive Soon
Hong Kong’s current stance on cryptocurrency is the least rigid within the region, that could be a stark distinction to a lot more uncompromising approach taken by mainland China. As Hong Kong is one amongst the world’s leading monetary epicenters, the SFC is ready to appraise cryptocurrency laws, particularly in terms of controlling the ‘ICOs‘ [Initial Coin Offering] sector.
Crypto-related business activities in China are pretty must prohibited, therefore some folks may suppose that this move is long owed. In step with the SFC, if an investment fund has 10 percent or more of digital assets they’ll currently require to obtain a license. And even then the companies can solely be able to sell their merchandise to skilled investors.
The SFC need to line up a voluntary scheme where exchanges are able to take a look at their digital assets in what’s being deemed a “temporary restrictive sandbox” and can then be able to decide whether or not they need to acquire a license.
What’s Next Expected From Hong-Kong?
The Hong Kong SFC is continuously warning the industry for several months concerning their plans to impose tighter cryptocurrency laws. Earlier this year in Feb, the SFC warned seven cryptocurrency exchanges within the wake of complaints filed by the investors.
So, it’s hardly any surprising that Hong Kong is seeking to tighten cryptocurrency laws as several major economies across the globe are presently “re-evaluating” their stance on crypto laws.
However, there are several pro’s and con’s in adopting tighter restrictive measures on the Hong Kong crypto trading. Although several take into account that it’s essential to safeguard investors and keep a lid on the industry, others believe that the new cryptocurrency laws might be pricey and work against crypto companies in Hong Kong.
Daiwa Institute of analysis professional ‘Daisuke Yasaku’ believes it’d be a nasty issue for Hong Kong, explaining:
“The expected price of regulations are high. the implementations of the SFC initiative could prove too taxing for a few operators.”
The price of wider crypto adoption will forever be high, however that’s the price we have to pay generally to ensure that the industry and investors are protected.