According to cryptoslate.com on November 03.2020, Hong Kong will now need all cryptocurrency trading platforms to be regulated whether or not they trade securities.
As per Reuters that the Hong Kong Securities and Futures Commission (SFC) had previously placed an “opt-in” regulatory framework for cryptocurrency trading platforms, but these had made it possible for some trading platforms to operate away from the regulatory radar, SFC CEO Ashley Alder said in a statement.
The watchdog head stated that all crypto trading platforms in Hong Kong would be regulated, supervised, and monitored under one of two regimes: the existing opt-in framework introduced by the SFC in 2019, with the proposed new licensing approach being that of today.
Hong Kong is one of the largest financial markets and has been neutral on its position on cryptocurrencies. This has allowed crypto exchanges to provide services to clients globally.
Bitcoin Association of Hong Kong conducted a survey on Twitter in order to evaluates the proposal’s economic impact. And over 52% of 123 respondents felt the move was “terrible for Hong Kong.”
The move comes a year after the SFC allowed crypto exchanges to join a provisional regulatory framework if they operated in Hong Kong. But It seems that the wait has not borne well.