Again important news from China, where today the Financial Commission will come up with new regulations on Bitcoin and crypto-exchanges, which may lead to the legalization of China’s first crypto-exchange Huobi.
Reuters reports this in a publication after the news was made public by Ashley Alder, Chief Executive of the Securities and Futures Commission (SFC), who oversees financial laws and regulations in Hong Kong. The news came out through Alder at a local fintech event.
Clarity for crypto-exchanges in Hong Kong
The new guidelines will provide insight into how the watchdog expects crypto exchanges to act on topics such as storing privacy-sensitive information, guidelines on the prevention of money laundering practices and legislation such as ‘Know Your Customer’, among other relevant issues.
The framework will ensure that practically every crypto trading platform can be regulated in the same way by the SFC. “A huge step forward in the further adoption of crypto and crypto exchanges within Hong Kong,” Alder said in her statements.
The first SFC guidelines for crypto-exchanges date from November 2018. Now, one year later, the watchdog takes these guidelines to the next step.
Huobi possibly the first legal crypto-exchange in Hong Kong
Private investor Dovey Wan responds to the news by stating that this is a ‘big deal’ for the entire cryptocurrency industry. She adds that in her opinion Huobi seems to be well on its way to becoming Hong Kong’s first licensed crypto-exchange.
Earlier this year, the SFC also issued guidelines on how to deal with Security Token Offerings (STOs).