Hong Kong further cracksdown on the unlicensed Bitcoin trading platforms that operate on the territory and urged them to get a license as we can see more in our latest bitcoin news today.
In what seems to be another crackdown on freedom in Hong Kong, the Securities and Futures Commission said that BTC exchanges that operate in the territory have to be licensed and the SFC proposal seeks to enforce a ruling by levying heavy fines and even prison sentences on those that will not comply. The Hong Kong government confirmed that it intends to prohibit retail investors from trading crypto.
A fine of $644,054 and up to seven years of imprisonment as a deterrent against the non-complaint people and the government also confirms that those that will not follow AML rules and counterterrorist financing requirements will face a fine of up to $HK1 Million and up to two years in prison. The regulatory restrictions will be met with alternative ways and means and by coming down hard on crypto, we can see results in a new goal for the authorities. Hong Kong further stepped up its anti-BTC campaign as the city’s financial services and Treasury Bureau released a report on anti-money laundering a week ago.
In a bid to combat money laundering and terrorist financing and the FSTB wished to draw up a new legislative proposal to meet the Financial Action Force standards. The FATF published new guidelines on how the member states will approach cryptocurrencies. The Director of Research of Coin Center, Peter Van Valkenburgh said the recommendations are an undemocratic process that will result in mass warrantless surveillance. His main point of concern is the change in the definition of Virtual Asset Service Providers that will require more entities to register with local regulatory bodies and to conduct AML surveillance.
Lennix Lai who is a director of OKEX said:
“The new licensing regime will become more onerous for those that have been offering trading services that fall under the definition of regulated activities but without a licence, to the Hong Kong retail public.”
Lei said that his company is mulling over the new proposals and added that the smaller exchanges will leave Hong Kong rather than facing the compliance costs. China does not recognize crypto as legal tender and banned the practice of ICOs as well. Despite that, it’s common knowledge that Chinese people that want to trade crypto still do it via OTC desks.