Hong Kong issues guidance for crypto regulation industry, which lays down some requirements for the regulatory regime for cryptocurrencies. While the proposed regulation is far from perfect, it does represent a step in the right direction. Hong Kong is one of the first cities to regulate cryptocurrencies, and its recent announcement is encouraging. Its new crypto regulation guidance aims to make the process of crypto trading as transparent as possible.
Hong Kong Issues Guidance
Among the guidance documents issued by the SFC are requirements for virtual asset service providers and financial intermediaries. These guidelines will help ensure that all financial intermediaries meet their responsibilities, including suitability and know-your-client procedures. This guidance may be an impetus to obtain a license.
However, the SFC guidance for crypto firms should not be considered a substitute for the regulatory framework. Until then, it will be important for all financial institutions to follow the guidelines to avoid a potential lawsuit. Hong Kong issues guidance for crypto regulation.
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While the EU and the US have issued guidance for the crypto market, the regulatory frameworks have been uneven. Hong Kong and Singapore have developed regulations based on existing regimes and the limited range of crypto-assets they regulate. Meanwhile, the United States and several EU member states have developed comprehensive plans for crypto regulation. In the meantime, the crypto markets in Hong Kong have been a major focus of recent policy debates.