Today Hong Kong Securities and Futures Commission (SFC) is set to <a href="https://www.sfc.hk/web/EN/files/ER/PDF/Speeches/Ashley_FinTech_Week_speech.pdf">issue</a> rules for licensing cryptocurrency exchanges. The country’s financial watchdog will publish a framework for crypto exchanges later in the day according to Chief Executive Ashley Alder.
Moreover, the new regulations will dictate how exchanges will approach custody compliance such as Know-Your-Customer (KYC) and anti-money laundering regulations among others. Alder said:
<blockquote><strong><em>"Our new regulatory framework covers all of the key investor protection concerns, including the safe custody of assets, know-your-client requirements, anti-money laundering and market manipulation. And it also zeros in on many of the new concepts we are getting used to, such as hot and cold wallets, forks, airdrops and the like. We will also set out the criteria for platforms to decide on the inclusion of a new virtual asset for trading."</em></strong></blockquote>
<h2>Huobi May Become the First Licensed Crypto Exchange in Hong Kong</h2>
Additionally, the move appears to be a positive development to the entire cryptocurrency sector. In particular, it will benefit Huobi Global; as the firm is planning a backdoor initial public offering <a href="https://www.cryptoknowmics.com/crypto/chinese-crypto-mining-giants-files-400m-initial-public-offering-ipo/">(IPO)</a> in Hong Kong. Back in September 2018, Huobi acquired the Hong Kong-listed electronics company Patronics Holdings. Recently, Optronics claimed it will change its name to Huobi Technologies Holdings Limited. However, Huobi could become the first licensed exchange in Hong Kong.
Furthermore, attempts by other companies such as Miner manufacturers Bitmain and Canaan Creatives to go public in Hong Kong failed. Canaan had to move its IPO listing to the United States. Reportedly, Bitmain also moved its IPO to the United States.
In conclusion, back in March this year the SFC also released the regulatory framework for Security Token Offering. The financial watchdog indicated that security tokens are likely to be securities, and thus falls under the existing securities laws of Hong Kong.

Hong Kong’s Securities Regulator to Issue Regulatory Framework

Today Hong Kong Securities and Futures Commission (SFC) are set to issue rules for licensing cryptocurrency exchanges. The country’s financial watchdog... %

My first love is music – then goes writing. I don’t write fiction, I analyze bulls and bears in markets. I call it my jungle, the digital jungle of crypto and chains.

Hong Kong’s Securities Regulator to Issue Regulatory Framework

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