The regulator of Hong Kong intends to introduce more stringent rules for cryptocurrency

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Hong Kong financial regulator, the Commission for securities and exchanges (SFC), is planning to introduce tougher rules for business transactions related scriptactive.

Although the Hong Kong authorities still relatively soft approach to management of the digital assets currently, SFC is committed to more closely track the associated blockchain technology and scriptactive operation. In particular, the regulator wants to introduce stricter rules for startups planning to launch initial offerings of coins (ICO).

SFC also plans to formulate more comprehensive guidelines for kryptomere, since in the region of South-East Asia continues to grow concern about the illegal activities associated with scriptactive.

License for professional investors

One of the main requirements is that investment funds have invested in cryptocurrencies 10% and more licensed. Cryptoform will also be restricted from selling their products and services are not professional investors.

To help local firms to better assess the performance and legitimacy of various crypto-assets, the SFC is considering the launch of a research scheme, which will allow the exchanges to test the digital currency before they transfer.

In February 2018, seven kryptomere received a warning from SFC about improving the quality of work, after receiving many complaints from local investors.

Compliance with KYC requirements

Cryptologist Hong Kong responded differently to the SFC plans on the introduction of stricter regulations for companies associated with cryptocurrency. Some noted that the regulator is doing the right thing, requiring verification of the “know your customer” (KYC) transaction for the cryptocurrency.

The Manager of the law firm from Hong Kong, Timothy Lo, I noticed that SFC requirements may be too onerous for some operators.

According to the publication Nikkei Asian Review, some local cryptoform may decide not to restructure their activities in accordance with the new regulatory framework because it would harm their business.

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