Regulating Crypto Businesses In Hong Kong.

Regulating Crypto Businesses In Hong Kong.

2021-02-15 | Robin Williams

Regulating Crypto Businesses In Hong Kong.

Cryptocurrency businesses within Hong Kong are trying to keep off against a forthcoming law that might restrict legal crypto trading to professional investors, locking out 93% of the native population from the market. Within comments to South China, Morning Post revealed on 15th Feb., industry body Global Digital Finance warned that the proposed law would be likely to push retail traders to embrace unregulated platforms. Global Digital Finance represents crypto exchanges like BitMEX, Huobi, Coinbase, and OKCoin, and has been at the forefront of industry efforts to keep off against the upcoming legislation. Hong Kong's Financial Services and therefore the Treasury Bureau primarily published the proposal earlier in Nov. last year, as a part of a bid to toughen AML and counterterrorist financing measures. The move aligns with efforts to bring domestic regulations into line with recommendations from the FATF. Yet the Bureau's proposal exceeds the wants of the FATF's framework, echoing instead the tough stance towards crypto trading in China. The chair of worldwide Digital Finance's advisory council, Malcolm Wright, has acknowledged that FATF members Singapore, the UK, and the U.S. all still allow retail traders to require part within the crypto market. Throughout January, the govt has been consulting with both members of the general public and industry bodies. Now that the consultation period has come to an in-depth, the proposal is predicted to become a bill and introduced to Hong Kong's legislature later within the year. South China Morning Post's estimate that 93% of the domestic population would be suffering from the ban is predicated on a recent CitiBank survey that found that roughly 7% - 504k individuals - had enough assets to satisfy the edge for professional investors. A representative from the Bitcoin Association of Hong Kong has recently argued that “to restrict retail individuals from accessing Bitcoin would be overshooting the government’s goals of promoting innovation, and financial inclusion.” The proposed restrictions could also reach Bitcoin cash machine machines, or ATMs, and can also significantly expand the remit of Hong Kong's existing cryptocurrency licensing rules for businesses.

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