Hong Kong Financial Body to Meet Virtual Asset Rules
The Hong Kong Financial Services Development Council – a cross-sectoral advisory body created by the government to involve the city’s financial services sector – brings together industry feedback on the government’s legislative proposals relating to virtual assets and providers of virtual asset services.
- In May, Hong Kong Financial Services and the Treasury Office released a report on the findings of a three-month public consultation that presented various proposals to improve anti-money laundering regulations and terrorist financing in accordance with the recommendations of the Financial Action Task Force for countries to regulate VASPs. Hong Kong intends to present an amending bill based on the results of the consultation during the 2021-2022 session of its Legislative Council.
- The proposals include allowing overseas incorporated companies to apply for VASP licenses and restricting cryptocurrency exchanges serving professional investors, a restriction that has raised concerns that crypto exchanges operating in Hong Kong will close. or move elsewhere. Under Hong Kong law, investors must hold portfolios worth HK $ 8 million (US $ 1.03 million) to qualify for professional investor status.
See the related article: What will happen if Hong Kong bans retail investors from trading cryptocurrencies?
- Although many players in the crypto industry were disappointed with the proposal to limit crypto trading to professionals, some said Forkast. News this regulation was inevitable as the crypto industry matured and expressed hope that the government would reconsider its position in time.
- The FSDC online survey invites VASPs to indicate whether the proposed regulations will affect their operations in Hong Kong and whether they plan to restructure their operations as a result of the proposals. Other questions relate to the issues faced by VASPs operating in the city, as well as Hong Kong’s strengths and weaknesses as a blockchain technology and digital asset hub.