The Hong Kong Securities and Futures Commission (SFC) will release today a new regulation for crypto trading platforms, Reuters reported today citing the statements made by the SFC chairman Ashley Alder.
The new rules will describe how exchanges must address custody and comply with client verification (KYC) and anti-money laundering (AML) regulations, among other issues.
According to Alder, "this framework will allow virtual asset trading platforms to be regulated by the SFC."
The watchdog released its first guide to regulate crypto exchanges in November 2018, so this update is just another step on its way to regulate the industry.
This initiative may have a positive impact on the industry as a whole, since the document provides exchanges with a reference to base their activity. In addition, it could also be specially beneficial for Huobi due to the fact that the exchange is preparing itself to go public in Hong Kong.
A wide number of popular crypto exchanges are currently operating in Hong Kong. However, it must be noted that they are somehow eluding the authorities since the digital assets they offer do not meet the definition of security.
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