The Legislative Council of Hong Kong passed it New Amendments to Anti-Money Laundering (AML) and Terrorist Financing Systems to Include Virtual Asset Service Providers.
The latest legislation establishes a new licensing regime for virtual asset service providers, which is expected to come into force from 1 June 2023. With the new amendments, crypto exchange service providers are subject to the same laws that traditional financial institutions are subject to.
This means that virtual exchanges looking to start operations in Hong Kong will have to go through strict AML guidelines and investor protection laws before being granted an operating license. Unlike most other regulators around the world, Hong Kong is using his FTX collapse as a way to mitigate the regulatory risks associated with centralized exchanges.
in the aftermath of Collapse of FTX crypto exchange, regulators around the world face public outrage for failing to protect retail investors. There is a growing call to bring cryptocurrency exchanges and service providers within the realm of the law and to impose strict AML and investor protection requirements.
Related: Can Hong Kong Really Be China’s Agent in Cryptocurrencies?
At a recent conference, Eddie Yue, Chief Executive Officer of the Hong Kong Monetary Authority, said: hinted at the possibility of investor protection regulation Nationwide soon. Recent legislative changes have put the state at the forefront of the pressing issue of investor protection.
Hong Kong actively Efforts to establish a well-thought-out regulatory base For the nascent crypto market. A policy proposing a regulatory framework and a risk-based regulatory direction was published by the Hong Kong government in October under the title of “Policy Declaration on the Development of Virtual Assets”. The government has proposed a number of pilot projects to evaluate and improve the technology underlying virtual assets.
