Hong Kong’s SFC will require all crypto exchanges to be regulated

Hong Kong’s Securities and Futures Commission (SFC) will require all cryptocurrency exchanges operating in the city to be regulated.

Ashley Alder, chief executive officer of the Hong Kong securities watchdog, said in the Fintech Week event on Tuesday that the requirement will apply to all platforms even if they do not trade security tokens, according a report on Reuters.

The move appears to be widening the SFC’s approach last year, which was allowing crypto exchanges to voluntarily join a regulatory framework if they operate in Hong Kong and “offer trading of at least one security token,” according to the SFC’s announcement in 2019.

However, Alder said some exchanges managed to operate outside the SFC’s regulatory radar under that approach. 

Currently, several major global crypto exchanges such as Huobi, OKEx and BitMex have operations based in Hong Kong. BitMex and its co-founders are facing criminal charges filed by the U.S. Department of Justice. 

 

© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.