The 1st ever license authorizing trade in digital assets has recently been granted to a company called OSL LTD. By obtaining a digital asset trading license in the SAR of Hong Kong, the company is able to trade in virtual securities & provide fully automated services. It’s also going to be able to launch a platform trading in digital assets in the SAR of Hong Kong.
So, let’s take a closer look at the situation with crypto currency regulation in the SAR of Hong Kong.
Regulation of Cryptocurrency Activities in Hong Kong
As mentioned above, the license will enable its holders to provide digital asset trading services in the SAR of Hong Kong, including the issue of investment tokens in the SAR of Hong Kong.
2019 saw the SFC announce a new approach to the licensing of platforms trading in digital assets in the SAR of Hong Kong. Among other things, it consisted in the introduction of new requirements for the insurance of e-wallets, segregation of assets owned by customers, increased customer awareness & tightened AML regulations.
While the rules for trading in conventional assets remained virtually unchanged, a new requirement for platforms trading in digital securities in the SAR of Hong Kong had been introduced.
Apart from tightening the regulation of cryptocurrencies in the SAR of Hong Kong, the new policy envisages additional protection to investors trading in conventional financial products. Also, thanks to the mechanism of voluntary licensing of cryptocurrency activities in the SAR of Hong Kong, traders get to select & distinguish between non-regulated & regulated platforms.
The new policy is good news for the crypto industry in the SAR of Hong Kong. By changing its approach, the SFC has taken yet another step toward making Hong Kong an undisputed leader in the regulation of digital asset platforms in Asia.
It’s expected that more crypto currency firms will be applying for a crypto currency license in the SAR of Hong Kong in the near future.
Considering launching a crypto currency exchange in the SAR of Hong Kong? Need advice on crypto currency regulation in the SAR of Hong Kong? Why not contact IQ Decision UK?