With the rise in money laundering and other crypto scam cases, the security authorities of nations also passively active. Major strict actions have been taken by the Hong Kong security commission. The Hong Kong security commission has set up many strict crypto laws on crypto exchanges and traders. Major steps regarding Initial Coin Offerings are undertaken by the Hong Kong security commission.
Strengthening Crypto Laws
Hong Kong is called the least stringent country when it comes to cryptocurrency stance. The country with leading financial institutions in the world is all set to tighten the crypto laws, focused more on regulations of the Initial Coin Offering (ICO). The Hong Kong Securities and Exchanges Commission (SFC) is planning to enforce some crypto laws; as the market scammers are intensively increasing.
As cryptocurrency is banned in China, therefore, it is a high probability that people might consider this new moves as little overdue. As per the Hong Kong Securities and Exchanges Commission (SFC), there is a need to have a license if the fund invested contains more than 10% digital assets. Not just this but the firms should also have this license even if they are selling their services to potential investors.
The SFC is providing a platform where the exchanges can test their virtual assets and can see whether they actually need to have a license or not.
SFC Actions and Laws
The virtual market space was already been warned by the Hong Kong Securities and Exchanges Commission (SFC) regarding the strict rules and regulations. In February, seven cryptocurrency exchanges had been warned by the SFC, as a lot of complaints were made by the investors. The SFC is in action regarding clearing their stance on crypto laws.
The biggest economies of the world are evaluating the stance of Hong Kong on cryptocurrency regulations – forcing the country to impose strict crypto laws.
With pros there come cons too. The crypto laws have two sides of the coin – many consider this step a solution to safeguard the investors – to strengthen the crypto industry, however, there are also who believe that the new crypto laws could be costly, and can even work against the crypto firms running in Hong Kong.