Hong Kong Planning Strict Rules for Crypto Platforms Through AML Law

A license system for crypto service providers aims to implement new laws tailored to govern the crypto industry in Hong Kong. The required modifications to the region’s anti-money laundering (AML) laws have been filed to its legislature and a recent report that was released looks at pertinent risks. Lawmakers To Monitor a Bill Aligning Cryptocurrency Members of the Legislative Council of China’s particular administrative area have been presented with amendments intended to regulate the cryptocurrency market in Hong Kong. They must concur in two readings for the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022, published in the government gazette in June, to become a law. Licensing For Virtual Asset Service Providers The document’s authors want to add registration for precious metal and stone dealers and to license for virtual asset service providers (VASPs). The intention is to require companies operating in the two sectors to comply with anti-money laundering and counter-terrorist funding regulations. To start a trading platform, for instance, businesses dealing in cryptocurrencies need to submit an application for a license to the Hong Kong Securities and Futures Commission (SFC) and meet specific standards. The Financial Action Task Force on Money Laundering (FATF), which establishes international standards in the area, is considered in the proposal. The SFC will oversee the adoption of appropriat...