Exchange News- The country has jumped ahead of the pack in addressing the problem of investor protection.
- Global regulators have come under fire for failing to safeguard retail investors.
A new amendment to Hong Kong’s Anti-Money Laundering (AML) and terrorist financing system, which includes virtual asset service providers, was recently enacted by the legislative council.
On June 1st, 2023, a new licensing system for virtual asset service providers will go into effect. As a result of recently passed legislation. With the new amendment in place. Cryptocurrency exchanges will be required to adhere to the same regulations as conventional financial institutions.
Safeguarding Investors
Therefore, virtual exchanges seeking a business license in Hong Kong. Will be subject to stringent anti-money-laundering requirements and investor protection legislation. Instead of using the FTX collapse as a learning experience, as have most other authorities around the world. Hong Kong has utilized it to lessen the regulatory risks associated with centralized exchanges.
Global regulators have come under fire for failing to safeguard retail investors in the wake of the FTX crypto exchange’s collapse. The need to regulate cryptocurrency markets and services by imposing rigorous anti-money laundering and investor protection norms has increased.
Eddie Yue, chief executive of the Hong Kong Monetary Authority, recently made hints about new investor protection measures at a conference. Since the recent legislative change, the country has jumped ahead of the pack in addressing the critical problem of investor protection.
Hong Kong has been making strides in laying a solid regulatory foundation for the emerging cryptocurrency sector. In October, the Hong Kong government released a document titled “Policy Declaration on the Development of Virtual Assets,” which proposed a regulatory framework and risk-based regulatory direction. In order to assess and enhance the technology supporting virtual assets, the government has proposed a variety of pilot projects.
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Source: https://thenewscrypto.com/hong-kong-incorporates-stringent-legislations-for-crypto-exchanges/