Hong Kong’s Regulator Spotlights Crypto Platforms Registration Deadline
Highlights
- Hong Kong regulator spotlights crypto firms registration deadline.
- All virtual assets trading platforms are to register before June 1.
- Failure attracts criminal sanctions with users urged not to utilize non-compliant firms.
Hong Kong’s financial regulator has emphasized the non-contravention period for virtual asset trading platforms (VATPs) to register before the deadline. The Securities and Futures Commission (SFC) noted that the timeline for platforms operating under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) will end on June 1. The Commission reminded investors and stakeholders of the risks and implications of non-registration after the deadline.
Non-Registration Is a Criminal Offense
In a May 28 announcement, the regulator pointed out that a breach of the AMLO is a criminal offense prompting the SFC to take appropriate actions against the offender. According to the release, all firms operating in Hong Kong must either be registered or “deemed-to-be-licensed” under the law.
On the forgoing, investors are urged to trade with only SFC-licensed firms and confirm the firm’s status from the website. For deemed-to-be-licensed firms, the SFC warned that they are not yet licensed. However, they have been operating before the legal regime and undertook to enhance certain policies and structures.
On their part, deemed-to-be-licensed VATP must comply with all guidelines. These firms are not expected to onboard new retail clients until guidelines are obeyed. Per the release, firms are to comply with guidelines and prevent mainland Chinese residents from utilizing services.
“…including but without limitation, preventing Mainland Chinese residents from accessing any of their virtual asset-related services, and to take all necessary measures to procure the VATPs’ controlling entities and related parties to do the same.”
Hong Kong Tightens Crypto Regulation
Hong Kong regulators have increased crypto scrutiny in the past months citing investor protection to prevent market collapses. The country has released a series of guidelines to regulate the crypto market. The jurisdiction regarded as crypto-friendly saw a shift in regulatory framework with some analysts suggesting a future change in mainland China.
Globally crypto regulation takes shape as authorities seek clear rules for crypto firms and users. From the landmark Markets in Crypto Assets (MiCA) regulation, lawmakers seek to tighten rules.
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