Hong Kong to Regulate Crypto Trading Platforms
VICTORIA, HK – Hong Kong’s Securities and Futures Commission (SFC) proposed new rules for crypto trading platforms Monday.
New and existing platforms will be required to be licensed by the SFC by June 1, 2023. The statement warned, “Those [businesses] which do not plan to apply for a [license] should start preparing for an orderly closure of their business in Hong Kong.”
Requirements imposed on such platforms will include “safe custody of assets, know your client conflicts of interest, cybersecurity, accounting and auditing, risk management, anti-money laundering/counter-financing of terrorism, and prevention of market misconduct.”
The new measures come as no surprise after the multiple crypto exchanges that collapsed in 2022, extinguishing billions of dollars in investor funds. Julia Leng, CEO of the SFC explained that there is a “clear consensus among regulators globally” to enforce protections for investors.
