The Hong Kong government is seeking to ban retail investors from cryptocurrency trading and implement a licensing regime for exchange operators alongside parallel tailwinds in mainstream banking.
As companies like DBS, PayPal and more are embracing cryptocurrencies, authorities in Hong Kong are looking to crack down on the emerging space, attributing tightening to concerns about fraud and money laundering.
«Simply speaking, we will require all virtual asset trading platforms to be operating transparently, like working under the sunlight,» said Christopher Hui Ching-yu, Hong Kong’s secretary for financial services and the treasury, in a statement.
SFC Support
The Securities and Futures Commission (SFC) also shifted its previous position which allowed cryptocurrency trading platforms to have the option to be regulated.
SFC director of licensing and fintech head Clara Chiu said during the 2020 Hong Kong FinTech Week that the new regime would require all platform providers to apply for a license to ensure asset security and prevent market manipulation or money laundering activities.
Under the new regime, only professional investors with HK$8 million ($1 million) or above in assets would have access to the asset class.
