Hey All,
While browsing my twitter feed this morning, I saw this positive news around crypto exchanges listing guidelines in Hong Kong's - Securities Futures Commission (SFC). While at the other side like in United States and other parts of the world governments are making it difficult for crypo and blockchain associated to projects to run their businesses by enforcing more stringent rules.
This move from Securities Futures Commission (SFC) to laying down the guidelines for licensing crypto exchanges is going to be significant move for the entire crypto industry🔥🔥🔥 And with news we could also see other crypto friendly countries adopt some what similar guidelines for crypto exchanges to follow for their smooth functioning rather than put a complete ban on crypto exchanges. So now without a further ado let us dive into some of the guidelines associated to it.
- The guidelines is going to provide support to crypto trading platforms.
- Starting June 1 - crypto exchange platform will be allowed to offer trading services to retail investors. As a result of which this should give investors/users more options of different crypto exchanges being available and at the same time help legitimize the industry.
- Anti-Money Laundering (AML) and Know Your Client (KYC) a MUST...
The SFC's chief executive Julia Leung revealed that the consultation process on the licensing regime received over 150 responses from interested parties.
With this statement from SFC's chief executive Julia Leung it indicates that there is significant interest in the crypto industry in Hong Kong. They realize the importance of Blockchain and the value its beings in general to everyone may it be its users or the technology that is being put into use.
Further in order to ensure that crypto industry is safe & secure for its investors the Anti-Money Laundering (AML) and Know Your Client (KYC) regulatory requirements would be a must HAVE and the same was the key considerations made in the Feb. 20 report. At the moment the confirmation is still pending for most of the VASP aka virtual asset service provider licenses, which defines the necessary permission to trade cryptocurrencies. But there are some crypto trading platforms who have already begun offering #crypto -related services to investors under the SFC’s supervision.
Overall - SFC taking a proactive approach to regulating the crypto industry is a positive move in the right direction and would set examples for other countries as well. This will not only help legitimize the industry but the fear of users of loosing their money to an exchange would also be eradicated to some extent as these exchanges would be coming under the Anti-Money Laundering (AML) act. Hence the crypto exchanges will need to be very careful with users funds, fulfill all the legal formalities like KYs and others so room of crypto exchange being bankrupt would be minimized to a great extant.
Have Your Say on Crypto exchange licensing guidelines
How are things in your country with regards to licensing guidelines for crypto exchanges? Do you have many options available for crypto exchange? Putting crypto exchange under AML is a good move? What are your thoughts on this? Let me know your thoughts in the comment box below... cheers
Hong Kong's - Securities Futures Commission (SFC) - To Release Crypto Exchange licensing
#sfc #crypto #exchange #legal #hongkong #licensing #guidelines
Best Regards
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