The Hong Kong Securities Futures Commission (SFC) is expected to be publishing licencing requirements for cryptocurrency exchanges in May.
The proposals were revealed on April 27 by Bloomberg, who quoted remarks made on Thursday by Julia Leung, the chief executive of the SFC. According to Bloomberg, Leung claimed that over 150 interested parties responded to the licencing regime’s consultation process.
Leung was likely responding to a report from February 20 that highlighted regulatory obligations for Know Your Client (KYC) and Anti-Money Laundering (AML).
The upcoming regulations will assist cryptocurrency trading platforms that, as of June 1, will be permitted to provide trading services to regular investors.
While most prospective Virtual Asset Service Provider (VASP) licensees are still awaiting confirmation, several trading platforms have already started providing investors with cryptocurrency-related services while being regulated by the SFC. According to Reuters, OSL and Hashkey Group are two of the few trading platforms that have previously been granted licences by the SFC.
Hong Kong wants to grow and position itself as a global financial centre. Retail investors will soon be able to trade cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), according to the regulator.
The United States is also undergoing a regulatory crackdown at the same time. The U.S. SEC has come under fire for not outlining clear regulations for operations such as trading in cryptocurrencies. On Monday, prominent American exchange Coinbase sued the SEC.
