Hong Kong Regulators To Make Cryptocurrency Laws More Strict
Hong Kong records as the latest Asian nation that is set to make cryptocurrency laws more strict on traders and exchanges.
The Hong Kong Securities and Exchanges Commission (SFC) is on the verge of tightening the current cryptocurrency laws as concerns over crypto-crime and money laundering increase across Southeast Asia.
Hong Kong’s stance on cryptocurrency is one of the least stringent in the region and as one of the world’s leading financial central point, the SFC is set to reevaluate cryptocurrency laws, especially in terms of regulating the Initial Coin Offering (ICO) sector.
Crypto-related activities in China are banned to a very large extent which should result in such moves. According to the SFC, if an investment fund has 10% or more of digital assets they will now need to obtain a license and the companies will only be able to sell their products to professional investors.
The SFC need to set up an intentional plan where trades will have the capacity to test their advanced resources in what is being considered a “temporary regulatory sandbox” and will at that point have the capacity to choose whether they have to look for a permit.