New rules for Cryptocurrency, says Hong Kong treasury chief

Christopher Hui is Hong Kong’s secretary for financial services and treasury whose comments on the regulatory aspect of cryptocurrency have raised a lot of questions. His concern about the regulatory measures has been reflected and thought after. StartmeupHK Festival’s Virtual FinTech Forum quotes Christopher Hui’s statement from the event.

Hui’s comments were more about protecting unlawful transactions which may lead to money laundering and terrorist financing. As per Hui, the imposition of mandatory requirements and regulations will help protect the investors and would also prohibit anyone from manipulating the market single-handedly. At the same time, Hui assured that provisions will be made to ensure any such malpractices can be averted in the future. The virtual asset industry is a growing market and even Hong Kong would be a part of the world-class regulatory framework to make it work. But with proper precautions and regulations in this matter.

Adding to Hui’s comments, the changes would require businesses to operate the virtual asset exchanges after they apply for licenses from Hong Kong’s Securities and Futures Commission. The foreign companies would also be allowed to have a license as virtual asset providers. However, there may be a lower limit for investors who will need to invest a minimum of US $1 million to be eligible for trading in cryptocurrencies. This limit is not a matter of concern for individuals.

The government of Hong Kong is planning to introduce the amendment bill which will have the consultation results and regulations for cryptocurrency in the Legislative Council’s next session of 2021-22.

Also Read: Hong Kong Crypto Exchanges Seek to Wash Hands of Dirty Power Problem