Hong Kong Slams Door on Retail Trading — Plans to Regulate Cryptocurrency Markets – Blockchain News, Opinion, TV and Jobs
In a large crackdown on fraud and money-laundering, Hong Kong has introduced a ban on the retail buying and selling of digital currencies, and can now for all cryptocurrency exchanges to be licensed underneath new rules. The brand new rules will allegedly carry down the hammer on a large quantity of unregulated cryptocurrency buying and selling within the metropolis.
Some pundits are noting that the proposed regulation if it could garner assist and go forward, ought to spell the top for an period of relaxed regulation of bitcoin and different digital belongings in Hong Kong. At current, most crypto-exchanges are usually not regulated.
Trade gamers count on the stricter licensing regime will result in consolidation as some change platform suppliers exit the native market.
Don Guo, CEO of Broctagon said:
“Though that is a direct knock to the native crypto trade, this can be a optimistic. The cryptocurrency trade has lacked a regulatory consensus and framework to make sure secure buying and selling. Whereas the panorama has sometimes been fragmented, it’s encouraging to see Hong Kong take the steps to ascertain a mainstream-like atmosphere for contributors trying to commerce crypto.
“That mentioned, the dialog is way from over. Though this information transfer might defend traders and encourage wider uptake, the UK’s FCA has just lately banned the buying and selling of crypto derivatives altogether, and different international governments proceed to pull their heels with reference to regulation. Therefore, the trade continues to be perceived as a “Wild West” by many.
“The buying and selling infrastructure has develop into way more refined and former challenges resembling illiquidity are being eroded, so it’s time the regulators caught up with the markets. Nations like China, Singapore and now Hong Kong proceed to prepared the ground when it comes to taking optimistic steps in direction of crypto regulation. As extra traders – significantly establishments – proceed getting into the area, governments should prioritise setting a transparent precedent so contributors can make investments safely.”
The federal government has launched a session paper to gather views on the proposed new guidelines, which provide extra investor safety over fraud mentioned Christopher Hui Ching-yu, China’s Secretary for Monetary Providers and the Treasury within the South China Morning Submit.
The brand new rules will cowl all varieties of digital belongings’ buying and selling platforms working in Hong Kong, in addition to abroad platforms focusing on native traders.
“Merely talking, we would require all virtual-asset buying and selling platforms to be working transparently, like working underneath the daylight. Beneath the proposed new regulatory regime, they need to slot in with the licensing necessities of the SFC and should observe all of the investor-protection and anti-money-laundering regulation,” added Hui.
The brand new regulation will make it obligatory for all cryptocurrency platform suppliers to use for a licence, as a substitute of the present allowance of simply letting the suppliers determine in the event that they need to be regulated.
Retail traders will probably be banned from buying and selling on the platforms, and solely skilled traders who’ve over HK$eight million (US$1.03 million) in belongings will probably be allowed to commerce. ]
This information falls on the current storm at cryptocurrency change OKEx who’ve suspended all actions, together with withdrawal, and in keeping with a report from the Chinese language information company, Caixin, that the founder Mingxing Xu (Star Xu), didn’t resume his work after the interrogation and should have disappeared.
Executives at OKEx mentioned that they’ve cancelled any affiliation with the OK group (Xu’s group) and don’t know the place Xu has disappeared. They’re cooperating with the police and famous that the funds are secure, so, individuals don’t have to fret about it. OKEx CEO Jay Hao said the freeze was mandatory and regular operations will resume quickly.