Bitcoin News Of hongkong! Hong Kong legislators are aiming to introduce new legislation to regulate crypto space and introduce new licensing schemes for crypto service providers.

Hong Kong legislators are aiming to introduce new legislation to regulate crypto space and introduce new licensing schemes for crypto service providers. A bill regulating cryptocurrencies will support Kong Kong’s entry into the virtual asset market and bring its suppliers to the mainstream of the island’s financial services industry.

Modifications aimed at linking the cryptocurrency industry with traditional finance
Changes to the Hong Kong crypto market have been introduced and are currently awaiting approval from members of the Legislative Council of the Special Administrative Region of China. Money Laundering Prevention and Terrorism Financing (Amendment) Bill 2022 was published in the Government Bulletin in June and requires two separate readings to become a law. The creator of the proposal sought to amend the bill to introduce a Virtual Asset Service Provider (VASP) license and a registration of precious metal and jewelry dealers. The purpose of this bill is to harness the power of the law to avoid taxes and raise funding obligations based on the fight against terrorism by entrepreneurs operating in the above two sectors.

For example, if an entity that uses cryptocurrencies sets up a trading platform, it must be licensed from the Hong Kong Securities and Futures Commission (SFC) and meet some requirements. Under the new law, SFC states that VASP has appropriate mechanisms to disclose asset and business policies, provide appropriate financial reporting and disclosure, and prevent market manipulation, abuse and conflicts of interest. I have a duty to confirm.

According to Andrew Leelarthaepin, CEO of the Asia-Pacific Cryptocurrency Exchange Bitstamp, in an article published in the South China Morning Post, adjustments are similar to and equivalent to those applied to traditional institutions in the financial services industry. Must be met. .. He sees crypto companies as part of Hong Kong’s financial framework and commented:

In short, VASP can be expected to be regulated at the same level as institutional investors. The law recognizes VASP as a partner organization in the financial services sector.

The proposed set of regulations and legal actions represents an important step in the mainstreaming of cryptocurrencies in Hong Kong’s financial industry. This is important for two important reasons. First, you can further protect your investors by regulating black currencies with traditional financial services. They act as a means similar to customer protection and take action to promote investor involvement and confidence in the ecosystem.

Second, traditional investors operate very securely in the regulatory arena of rule-based systems developed by financial regulators. As a result, many institutions await further regulatory clarification before entering new markets.