Hong Kong has taken action to regulate any cryptocurrency platform operating across the region. The price of Bitcoin (BTC) was negatively affected by this news and went down to below $ 13,200.
Ashley Alder, CEO of the Hong Kong Securities and Futures Commission (SFC), announced on Tuesday that SFC’s cryptocurrency policy will change. According to the statement, cryptocurrency platforms aiming to operate in Hong Kong will need to obtain a special license from the region.
Anti-AML license will be issued
Alder made his statements about cryptocurrency regulations during the Hong Kong Fintech Week. The regulator announced that the regulations that will cover cryptocurrency platforms will be prepared largely in line with anti-money laundering (AML) laws. Alder said the government will formally propose this bill later in the day.
According to the regulator’s statements, with the enactment of this bill, any digital asset platform operating in Hong Kong will be “regulated, audited and monitored”. These audits will be carried out within the framework of the regulation Hong Kong announced last year.
Last year’s regulation was insufficient
The Hong Kong regulator drafted a legal framework for cryptocurrency platforms last year. However, these regulations only covered platforms that served over a digital asset “legally classified as a security.”
This was not enough to regulate cryptocurrency platforms. Alder touched on this issue at Fintech Week and said, “A cryptocurrency platform that did not want to be caught on our radar was buying and selling cryptocurrencies that are not legally defined as ‘securities’, and it was not caught.”
Bitcoin price hit hard
Bitcoin price started to drop rapidly after this announcement from the Hong Kong regulator. The fact that cryptocurrency platforms in Hong Kong will now receive licenses from SFC has caused a turbulent reaction in Asian markets.
The Bitcoin price, which reached almost $ 13,600 yesterday, is currently being traded at almost $ 13,300 in many exchanges. Bitcoin’s trade volume is $ 22.8 billion; market value fell to $ 246.8 billion.