Hong Kong to Unveil New Cryptocurrency Exchange Licensure Guidelines

[MUGNIA]

Hong Kong’s securities watchdog, the Securities and Futures Commission (SFC) appears to be poised to lay down a regulatory framework for cryptocurrency exchange applications in the region.

The news comes following a speech by Ashley Alder, the Chief Executive Officer of the SFC during Hong Kong FinTech Week 2019. According to the transcript, Alder recognizes that Hong Kong hasn’t been straightforward on the regulations surrounding cryptocurrency exchanges and related virtual asset businesses.

As it stands, some of the world’s largest cryptocurrency exchanges operate out of Hong Kong, and most have largely escaped regulation since the majority of virtual assets fall outside the definition of securities or futures contracts — and are hence not subject to SFC oversight. However, Alder recognizes the need to deal with the special risks associated with virtual asset trading platforms—particularly ensuring the safe custody of user funds and preventing cybersecurity issues that could lead to theft.

More : https://beincrypto.com/hong-kong-to-unveil-new-cryptocurrency-exchange-licensure-guidelines/

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