The Securities Futures Commission (SFC) of Hong Kong is preparing to announce licensing guidelines for cryptocurrency exchanges next month. The move is aimed at providing clarity to crypto exchanges looking to offer services to retail investors in Hong Kong. The guidelines are expected to come into effect on June 1 and will include regulatory requirements like Anti-Money Laundering (AML) and Know Your Client (KYC) protocols. The SFC’s CEO, Julia Leung, stated that the guidelines were a result of receiving over 150 responses from interested parties during the consultation process.
While some crypto exchanges have already started offering crypto-related services under the SFC’s supervision, others have opted to exit the market. For instance, Bitget recently announced that it would cease offering services to Hong Kong customers when the VASP crypto regime comes into effect on June 1.
The new guidelines are a significant development in Hong Kong’s crypto industry, providing a much-needed regulatory framework. The move comes at a time when regulators worldwide are increasingly paying attention to cryptocurrencies, given the potential risks they pose to investors. With the new guidelines in place, Hong Kong hopes to provide a safer environment for retail investors and promote the growth of the crypto industry in the region.
