Hong Kong Amends Finance Law to Incorporate Crypto Firms

Virtual asset service providers will be covered by terror financing and anti-money laundering rules as of June 2023.

AccessTimeIconDec 8, 2022 at 12:53 p.m. UTC
Updated Dec 8, 2022 at 3:53 p.m. UTC
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Jamie Crawley is a CoinDesk news reporter based in London.

Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Hong Kong is to subject crypto providers to the same anti-money laundering and counter-terrorist financing laws that it does traditional finance firms.

The territory's Legislative Council voted to add virtual asset service providers (VASP) to the Anti-Money Laundering and Counter Terrorist Financing Ordinance as of June 1, 2023, according to a Dec. 5 amendment to the law.

The fallout from the collapse of FTX, which was once based in Hong Kong before departing for Bahamas in September 2021, casts doubt over what crypto-friendly ambitions Hong Kong may now have. Prior to the exchange's failure early November, the territory showed signs of relaxing its tough regulations and becoming a more crypto-friendly environment. The Financial Services and Treasury Bureau said at the end of October that it was open to allowing retail customers to trade crypto or approving a virtual assets exchange-traded fund (ETF).

Last month, however, Julia Leung, the deputy CEO of the Securities and Futures Commission, called for tough rules to be implemented on crypto firms, saying that recent events had highlighted the volatility of the industry and the threats posed by its links with traditional financial services.




DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Jamie Crawley is a CoinDesk news reporter based in London.


Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


CoinDesk - Unknown

Jamie Crawley is a CoinDesk news reporter based in London.