Hong Kong’s local parliament has passed amendments to anti-money laundering and anti-terrorist financing laws, adding a new requirement for virtual asset service providers.
Starting June 1, 2023, a new licensing regime will be introduced for virtual asset service providers, which will bring them under the same rules as traditional financial institutions.
All cryptocurrency exchanges planning to open a business in Hong Kong will be required to undergo due diligence for compliance with anti-money laundering and terrorist financing regulations, as well as investor protection laws. Only after that, the trading platforms will be granted a license to operate.
At a conference of the heads of the central banks of Hong Kong, Korea, Thailand and New Zealand, Hong Kong Monetary Authority Executive Director Eddie Yue said that recent developments in the cryptocurrency market require regulators to urgently develop effective investor protection rules.
Earlier, US Congressman Ritchie Torres turned to the US Government Accountability Office and accused Gary Gensler of mediocre leadership of the department. The official insists that it was the actions or inaction of the SEC that led to the collapse of the FTX cryptocurrency exchange.
Source: Bits
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