Hong Kong issues new guidelines on its path to legalize crypto
More and more state governments are moving forward with licenses granted to the crypto industry, while some of them also hope to resolve their existing economic issues with crypto. On November 1st, in another major move for the cryptocurrency market, Hong Kong’s securities regulator issued a statement setting out guidelines for cryptocurrency, which would become the first step in order to formally regulate crypto exchanges in the country.
According to Ashley Alder, chief of Chinese territory’s Securities and Futures Commission (SFC), this guidance on regulatory standards will set in motion a series of steps that would lead to the formal regulatory environment.
The draft of the guidelines presents several new major developments in terms of the regulatory requirements. For instance, even those investors who work with ‘virtual assets’ even partially would still be required to observe essentially the same regulatory requirements as those whose full portfolio is dedicated to crypto. Additionally, all investors who work with virtual assets will have to obtain a license under the SFC.
Cryptocurrency exchanges could also potentially fall under the SFC’s supervision more directly in the future. This regulatory move will help to push Hong Kong to fully legalize cryptocurrency very shortly, as it’s been already done for the rest of China.