Hong Kong to Mandate Crypto Exchange Regulations

Hong Kong’s Securities and Futures Commission (SFC) will mandate the regulations of all cryptocurrency trading platforms operating in its jurisdiction.

The confirmation came from Ashley Alder, Chief Executive Officer of the Hong Kong securities watchdog, while he was speaking at the Fintech Week event on Tuesday, Reuters reported.

This move is an extension of the crypto regulatory framework introduced by the Hong Kong regulator in November last year. However, those rules are kept as ‘opt-in’, meaning it is the choice of digital asset exchanges to apply for a license and follow the regulations.

“This is a significant limitation, as 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,” Alder said in his speech.

Exchanges Want Easy Licenses

It is to be noted that many major cryptocurrency exchanges, including Huobi, OKEx, and BitMEX, are based and operating from Hong Kong, but are licensed by other crypto-friendly jurisdictions. The majority of these companies did not opt-in for the existing regulatory frameworks of the local jurisdiction.

Reuters highlighted that the SFC did not issue a full license to any crypto Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term. It only agreed in principle to issue a license to OSL Digital Securities, a Cryptocurrency Exchange Cryptocurrency Exchange A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f Read this Term of the BC Group.

The Hong Kong government will propose the new licensing measures under its anti-money laundering legislation. Thus, crypto trading platforms operating in Hong Kong or offering services in the region will be required to obtain the license.

Singapore and Japan, two other Asian cryptocurrency hubs, already require the cryptocurrency exchanges operating in the country to receive a regulatory license to continue their operations.