Hong Kong is ready to introduce new crypto rules

Hong Kong regulators and senior government officials have spoken of their willingness to introduce new crypto rules, with a new set of guidelines for e-money brokers being developed.

Hong Kong is poised to introduce new crypto rules

According to RTHK, Hong Kong Finance and Financial Services Minister Christopher Hui Ching-yu noted that the government must now “react to market changes” as tokens like Bitcoin (BTC) continue to grow in popularity.

Hui was speaking at a summit with CFOs and regulators, where he announced that the government plans to “this year” amend Hong Kong’s Anti-Money Laundering (AML) law regarding the licensing and regulatory regimes for cryptocurrency exchanges to suggest. He commended Hong Kong’s performance in AML-related activities but stated that “much work remains to be done” if the province “maintains its status as an international financial hub”.

Hui added that the popularity of “virtual assets” has led to the need to amend the law to “add provisions prohibiting unlicensed exchanges from advertising their services.”

The minister said similar steps had been taken in Germany and Switzerland. But he also suggested that Hong Kong could find a way to give retail investors more access to the crypto market.

New crypto rule to protect investors

Also present was Julia Leung, Deputy Chief Executive Officer and Managing Director (Intermediary Division) of the Securities and Futures Commission (SFC), who commented that the current rules for brokers, financial institutions and other intermediaries need to be tightened – adding that trading platforms are needed to ensure that their own funds and those of their clients are kept segregated.

She was quoted as saying that splitting up the fund would ensure clients’ assets can be protected even if a trading platform goes bust.

Leung explained that “some investors” prefer to buy money through “intermediaries such as banks, securities and brokers,” according to the commission, along with the Hong Kong Monetary Authority (Hong Kong’s central bank and regulator), Hong Kong’s top financial regulator). “circle” out.

The report notes that the circular contains a number of rules that crypto-related intermediaries are required to comply with, including that they should only offer their services to specialized investors. The circular also explains that brokerage firms must fully disclose risks and provide clients with transparent tools to “protect investors”.

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