Hong Kong Crypto Platforms To Face Licensing Regime As Part Of Anti-Money Laundering Law: Report

New crypto trading platforms will have to get a licence from the Securities and Futures Commission of Hong Kong

Hong Kong appears to be planning strict rules for crypto platforms.

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Cryptocurrency platforms in Hong Kong will reportedly face a new licensing regime soon as part of the region’s Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022. The bill, still in its draft stage, looks to introduce licensing for virtual asset service providers (VASP) as well as the registration for dealers in precious metals and stones, as reported by Bitcoin.com. The bill was published in the Hong Kong government gazette back in June and reportedly still needs the centre’s approval in two readings to become law. 

When the law gets passed, new crypto trading platforms will have to get a licence from the Securities and Futures Commission of Hong Kong. Platforms will have to fulfill a list of requirements to get the licence. 

In India, all cryptocurrencies are clubbed under virtual digital assets (VDA). As part of the new tax regime that came into effect on April 1, all gains from VDAs will attract a taxation of 30 percent, irrespective of the income slab. On top of that, a TDS of 1 percent was imposed on July 1.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.