Hong Kong Slams Door on Retail Trading — Plans to Regulate Cryptocurrency Markets – Blockchain News, Opinion, TV and Jobs
In a large crackdown on fraud and money-laundering, Hong Kong has introduced a ban on the retail buying and selling of digital currencies, and can now for all cryptocurrency exchanges to be licensed underneath new laws. The new laws will allegedly convey down the hammer on a large quantity of unregulated cryptocurrency buying and selling within the metropolis.
Some pundits are noting that the proposed regulation if it will probably garner assist and go forward, ought to spell the tip for an period of relaxed regulation of bitcoin and different digital property in Hong Kong. At current, most crypto-exchanges will not be regulated.
Industry gamers anticipate the stricter licensing regime will result in consolidation as some trade platform suppliers exit the native market.
Don Guo, CEO of Broctagon acknowledged:
“Although that is a right away knock to the native crypto trade, this can be a constructive. The cryptocurrency trade has lacked a regulatory consensus and framework to make sure secure buying and selling. While the panorama has usually been fragmented, it’s encouraging to see Hong Kong take the steps to determine a mainstream-like atmosphere for individuals seeking to trade crypto.
“That said, the conversation is far from over. Although this news move may protect investors and encourage wider uptake, the UK’s FCA has recently banned the trading of crypto derivatives altogether, and other global governments continue to drag their heels with regards to regulation. Hence, the industry continues to be perceived as a “Wild West” by many.
“The trading infrastructure has become far more sophisticated and previous challenges such as illiquidity are being eroded, so it’s time the regulators caught up with the markets. Countries like China, Singapore and now Hong Kong continue to lead the way in terms of taking positive steps towards crypto regulation. As more investors – particularly institutions – continue entering the space, governments must prioritise setting a clear precedent so participants can invest safely.”
The authorities has launched a session paper to gather views on the proposed new guidelines, which supply extra investor safety over fraud mentioned Christopher Hui Ching-yu, China’s Secretary for Financial Services and the Treasury within the South China Morning Post.
The new laws will cowl all varieties of digital property’ buying and selling platforms working in Hong Kong, in addition to abroad platforms focusing on native buyers.
“Simply speaking, we will require all virtual-asset trading platforms to be operating transparently, like working under the sunlight. Under the proposed new regulatory regime, they must fit in with the licensing requirements of the SFC and must follow all the investor-protection and anti-money-laundering regulation,” added Hui.
The new legislation will make it obligatory for all cryptocurrency platform suppliers to use for a licence, as an alternative of the present allowance of simply letting the suppliers resolve in the event that they wish to be regulated.
Retail buyers might be banned from buying and selling on the platforms, and solely skilled buyers who’ve over HK$8 million (US$1.03 million) in property might be allowed to trade. ]
This information falls on the current storm at cryptocurrency trade OKEx who’ve suspended all actions, together with withdrawal, and according to a report from the Chinese information company, Caixin, that the founder Mingxing Xu (Star Xu), didn’t resume his work after the interrogation and should have disappeared.
Executives at OKEx mentioned that they’ve cancelled any affiliation with the OK group (Xu’s group) and do not know the place Xu has disappeared. They are cooperating with the police and famous that the funds are secure, so, people don’t have to fret about it. OKEx CEO Jay Hao acknowledged the freeze was vital and regular operations will resume quickly.