06-03-2023, 10:56 AM
Hong Kong’s New Crypto Regime Kicks In
<p class="MsoNormal">Hong Kong
rolled out new rules on Thursday to guide the cryptocurrency industry in the
Chinese special administrative region. Crypto exchanges operating in the jurisdiction
are now required to get licensed to offer their services to retail traders.</p><p class="MsoNormal">Hong Kong Legalizes Crypto Trading</p><p class="MsoNormal">Agency
France Presse reported that the new rules include a provision to protect
investors by tasking exchanges to assess their clients’ level of knowledge on cryptocurrencies before onboarding. Additionally, exchanges
are being urged to limit investors’
risk exposure with tradable cryptocurrencies confined
to those with large market capitalization such as Bitcoin.</p><p class="MsoNormal">On the
other hand, the regulation rules out stablecoins, crypto derivatives and
staking products. This means that exchanges in the jurisdiction will only be able to offer crypto sport
trading to their clients.</p><p class="MsoNormal">However,
crypto firms in Hong Kong have a one-year transition period before the license
requirement will be enforced, the outlet said. Already, Hong Kong’s financial regulator has
received ‘a handful of applications’.</p><p class="MsoNormal">In March,
Christian Hui, Hong Kong’s Secretary for Financial Services and the Treasury,
disclosed that over 80 cryptocurrency firms both foreign and in Mainland China had
expressed an interest in obtaining the required license to set up local branches in the jurisdiction. This is even as reports of the financial hub’s plan to legalize
digital assets <a href="https://www.financemagnates.com/cryptocurrency/hong-kong-set-to-legalize-crypto/" target="_blank" rel="follow">first emerged late last
year</a>. </p><p class="MsoNormal">Previously,
Finance Magnates reported that digital asset companies, such as <a href="https://www.financemagnates.com/cryptocurrency/bitmex-adjusts-service-for-hong-hong-users-ahead-of-new-crypto-regime/" target="_blank" rel="follow">BitMEX</a> and <a href="https://www.financemagnates.com/cryptocurrency/coinex-targets-hong-kong-users-with-new-crypto-trading-service/" target="_blank" rel="follow">CoinEx</a>, launched customized services for Hong Kong users ahead of the new crypto regime. On Thursday, First Digital Group, a financial
institution that offers services, such as custody, clearing and settlement to
the digital asset industry, announced that it is launching FDUSD, a US dollar stablecoin. </p><p class="MsoNormal">The stablecoin is to be issued by the Group’s trust company registered in Hong Kong. However, in line with the new crypto rules, the stablecoin will not be available
to retail investors in the region.</p><p class="MsoNormal">Crypto in Asia</p><p class="MsoNormal">With the
launch of the new crypto rules, Hong Kong has achieved a milestone in its
effort towards becoming a top crypto destination. This is in stark contrast to China’s continued hard
stance against digital assets. </p><p class="MsoNormal">Across the wider Asia
region, financial watchdogs are making moves to put the cryptocurrency
industry under their control. Japan is starting this month with plans <a href="https://www.financemagnates.com/cryptocurrency/japan-to-adopt-strict-crypto-monitoring-rules-next-month/" target="_blank" rel="follow">to enforce strict
anti-money laundering measures</a> on cryptocurrency transactions. </p><p class="MsoNormal">Furthermore,
contrary to Hong Kong’s move, Singapore is developing plans to <a href="https://www.financemagnates.com/cryptocurrency/regulation/mas-md-confirms-singapores-plan-to-curb-retail-crypto-leverage/" target="_blank" rel="follow">restrict retail
investors’ participation</a> in the cryptocurrency industry. The country’s regulator in April <a href="https://www.financemagnates.com/forex/singapore-proposes-restrictions-on-financial-product-promotions/" target="_blank" rel="follow">put forward proposals</a> to limit the marketing of financial products
in both the physical and digital space.</p><p class="MsoNormal">Revolut hits 30M users; crypto trading on TP ICAP; <a href="https://www.financemagnates.com/forex/news-nuggets-1-june-revolut-hits-30m-users-crypto-trading-on-tp-icap/" target="_blank" rel="follow">read today's news nuggets</a>.</p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
https://www.financemagnates.com//cryptoc...-kicks-in/
<p class="MsoNormal">Hong Kong
rolled out new rules on Thursday to guide the cryptocurrency industry in the
Chinese special administrative region. Crypto exchanges operating in the jurisdiction
are now required to get licensed to offer their services to retail traders.</p><p class="MsoNormal">Hong Kong Legalizes Crypto Trading</p><p class="MsoNormal">Agency
France Presse reported that the new rules include a provision to protect
investors by tasking exchanges to assess their clients’ level of knowledge on cryptocurrencies before onboarding. Additionally, exchanges
are being urged to limit investors’
risk exposure with tradable cryptocurrencies confined
to those with large market capitalization such as Bitcoin.</p><p class="MsoNormal">On the
other hand, the regulation rules out stablecoins, crypto derivatives and
staking products. This means that exchanges in the jurisdiction will only be able to offer crypto sport
trading to their clients.</p><p class="MsoNormal">However,
crypto firms in Hong Kong have a one-year transition period before the license
requirement will be enforced, the outlet said. Already, Hong Kong’s financial regulator has
received ‘a handful of applications’.</p><p class="MsoNormal">In March,
Christian Hui, Hong Kong’s Secretary for Financial Services and the Treasury,
disclosed that over 80 cryptocurrency firms both foreign and in Mainland China had
expressed an interest in obtaining the required license to set up local branches in the jurisdiction. This is even as reports of the financial hub’s plan to legalize
digital assets <a href="https://www.financemagnates.com/cryptocurrency/hong-kong-set-to-legalize-crypto/" target="_blank" rel="follow">first emerged late last
year</a>. </p><p class="MsoNormal">Previously,
Finance Magnates reported that digital asset companies, such as <a href="https://www.financemagnates.com/cryptocurrency/bitmex-adjusts-service-for-hong-hong-users-ahead-of-new-crypto-regime/" target="_blank" rel="follow">BitMEX</a> and <a href="https://www.financemagnates.com/cryptocurrency/coinex-targets-hong-kong-users-with-new-crypto-trading-service/" target="_blank" rel="follow">CoinEx</a>, launched customized services for Hong Kong users ahead of the new crypto regime. On Thursday, First Digital Group, a financial
institution that offers services, such as custody, clearing and settlement to
the digital asset industry, announced that it is launching FDUSD, a US dollar stablecoin. </p><p class="MsoNormal">The stablecoin is to be issued by the Group’s trust company registered in Hong Kong. However, in line with the new crypto rules, the stablecoin will not be available
to retail investors in the region.</p><p class="MsoNormal">Crypto in Asia</p><p class="MsoNormal">With the
launch of the new crypto rules, Hong Kong has achieved a milestone in its
effort towards becoming a top crypto destination. This is in stark contrast to China’s continued hard
stance against digital assets. </p><p class="MsoNormal">Across the wider Asia
region, financial watchdogs are making moves to put the cryptocurrency
industry under their control. Japan is starting this month with plans <a href="https://www.financemagnates.com/cryptocurrency/japan-to-adopt-strict-crypto-monitoring-rules-next-month/" target="_blank" rel="follow">to enforce strict
anti-money laundering measures</a> on cryptocurrency transactions. </p><p class="MsoNormal">Furthermore,
contrary to Hong Kong’s move, Singapore is developing plans to <a href="https://www.financemagnates.com/cryptocurrency/regulation/mas-md-confirms-singapores-plan-to-curb-retail-crypto-leverage/" target="_blank" rel="follow">restrict retail
investors’ participation</a> in the cryptocurrency industry. The country’s regulator in April <a href="https://www.financemagnates.com/forex/singapore-proposes-restrictions-on-financial-product-promotions/" target="_blank" rel="follow">put forward proposals</a> to limit the marketing of financial products
in both the physical and digital space.</p><p class="MsoNormal">Revolut hits 30M users; crypto trading on TP ICAP; <a href="https://www.financemagnates.com/forex/news-nuggets-1-june-revolut-hits-30m-users-crypto-trading-on-tp-icap/" target="_blank" rel="follow">read today's news nuggets</a>.</p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
https://www.financemagnates.com//cryptoc...-kicks-in/