THELOGICALINDIAN - Hong Kongs new crypto authoritative framework is actuality critiqued by industry experts
Crypto industry anatomy Global Digital Finance (GDF) has cautioned adjoin the proposed regulations in Hong Kong that would acquiesce cryptocurrency trading for able investors only.
Hong Kong Regulations Could Put Investors at Risk
In Nov 2020, Hong Kong’s Financial Services and the Treasury Bureau (FSTB) issued its Legislative Proposals to accompany AML regulations for crypto exchanges as per the recommendations from Financial Action Task Force (FATF).
One specific angle says that crypto exchanges should action trading casework to able investors only. Recently, leading crypto industry anatomy Global Digital Finance (GDF) said this angle was a above concern.
GDF boasts associates such as Bitfinex, Coinbase, Huobi as members. The accumulation declared that attached trading casework to able investors would actualize furthers issues in compliance.
Driving retail investors to use able trading casework would be counterproductive for regulators, said the organization.
GDF added if the angle is enforced, it “may see non-professional investors move appear able platforms that may actualize new areas of banking abomination risk.”
“Some of the proposals, decidedly attached to able investors, go above the FATF Recommendations,” wrote GDF in a contempo consultation document.
The alignment articular that added FATF affiliate countries such as Singapore, the UK, and the US accept accustomed retail investors to barter cryptocurrencies.
Millionaire Traders Only
As per Hong Kong law, to authorize as a able investor, one charge own an advance portfolio of at atomic HK$8 actor (~US$1 million).
According to a survey, alone 504,000 bodies (or 7%) of the city’s citizenry endemic added than US$1 million, and therefore, able to be able investors in mid-2020.
This agency that if the new crypto law is passed, it will bankrupt added than 90% of the citizenry of advance in cryptocurrencies. The abstract proposals were beneath accessible appointment till 31 Jan 2024 and may anon be anesthetized into law.
Hong Kong has been advised one of the best alive regions for crypto investors, partly due to its affable regulations.
If enforced, the new angle would abnormally appulse the city’s administration position in the industry.
Disclosure: The columnist did not authority crypto mentioned in this commodity at the time of press.
