Regardless of mainland China’s strict rules, Hong Kong has maintained a relatively open stance towards cryptocurrencies. The SFC’s latest rules on the issuance of Bitcoin ETFs replicate the town’s recognition of the demand for such digital belongings.
The FSTB’s proposed rules goal to deal with dangers by growing transparency and defending shoppers throughout the OTC cryptocurrency market. Anticipated regulatory measures doubtless embody:
Client Safety: Implementing KYC procedures to constantly confirm buyer identities and forestall unlawful actions.
Market Integrity: Establishing a regulated OTC market to keep up market integrity, appeal to institutional funding, and guarantee transparency and equity.
Worldwide Requirements Alignment: Harmonizing Hong Kong’s crypto regulatory framework with worldwide monetary facilities to bolster its fame as a safe and reliable monetary hub.
Fraud Prevention: Implementing rules to forestall fraudulent actions and safeguard buyers from being channeled into unlicensed buying and selling platforms.
Readability and Confidence: Offering authorized certainty and clear pointers for OTC shops and their clients, fostering long-term business progress and client belief.
