Hong Kong is coming up with stricter rules for the Bitcoin (BTC) trade. This is announced by the Securities and Futures Commission (SFC), the supervisory authority in the city.
Bitcoin stock exchanges and Hong Kong
All bitcoin and cryptocurrency exchanges in the city (7.5 million inhabitants) must comply with new laws and regulations, according to Reuters news agency.
After all, only last year there was voluntary participation, which meant that certain companies continued to operate within a tolerated structure. The watchdog wants to draw the same line with these new requirements.
In concrete terms, this means that all bitcoin exchange offices and trade fairs will fall under (new) anti-money laundering regulations.
The companies that fall under the old regime of 2019 will continue to do so, but companies that were not yet regulated will fall under the new regime. Parties that refuse to apply for a licence are illegal.
Hong Kong is an important hub for Bitcoin companies in the Asian region. Well-known names such as Bitfinex, BitMEX, OKEx, Huobi, Kraken and Gemini have offices there.
There is also an active interest group with the Bitcoin Association of Hong Kong.
„Some companies will try to circumvent the rules and flee the city“.
– HUGH MADDEN, CEO OF BC GROUP
Governments are increasingly targeting marketplaces. In China there has been a turmoil around OKEx and Huobi and in the US there are court cases against BitMEX.
In the Netherlands, exchange offices and wallet makers will be subject to the Money Laundering and Terrorist Financing (Prevention) Act (Wwft) as of 21 May. There is resistance to certain requirements of the supervisory authority De Nederlandsche Bank.