Issues regarding illegal activities, such as money laundering, have actually caused an increased call for the policy of cryptocurrencies, in the hope that balanced regulation will enhance the industry..
While countries such as the U.K, Singapore, and the U.S, have taken actions to adhere to the suggestions from the Financial Action Task Force (FATF), Hong Kong has taken this one step even more, and introduced a proposition to successfully ban retail trading of cryptocurrencies.
Through this proposal, existing anti-money laundering and counter-terrorist funding policies will be boosted and broadened to consist of cryptocurrencies..
Government plans to turn this proposition into a costs, which, if authorized, will restrict trading in cryptocurrencies to expert investors with a portfolio of at least HK$ 8 million. This will impact the majority of Hong Kongs citizens, making cryptocurrency unavailable to around 93 percent of the citys population, according to the South China Morning Post.
This proposition has actually not been well received by supporters of cryptocurrency. The Bitcoin Association of Hong Kong has stated that it thinks Bitcoin ought to remain accessible to all Hong Kong citizens:.
” We fear that limiting non-institutional financiers from converting their Bitcoin into Hong Kong dollars constitutes capital controls. At a time where ordinary homeowners and government officials are denied access to basic banking services, we need to not further limit access to tools that decrease dependency on foreign institutions.”.
Global Digital Finance, the body that represents cryptocurrency exchanges such as Coinbase, BitMEX, and Huobi, concurs with the proposition to control virtual asset company, in line with the global efforts from numerous crypto advocates to get this property class managed. The GDF believes a more well balanced regulation will enhance this industry:.
” Restricting cryptocurrency trading to professional investors just is different to what we have actually seen in other jurisdictions such as Singapore, the UK, and the US, where retail financiers can purchase and sell virtual assets,” stated the chair of GDFs advisory council..
The attempts to follow the recommendations from the Financial Action Task Force, and adhere to anti-money laundering, comes as part of a larger anti-corruption project to punish illicit activities and widen the scope of its pre-existing legislation.
Disclaimer: This article is attended to informational functions just. It is not used or planned to be utilized as legal, tax, investment, monetary, or other guidance.
Title: Hong Kong Government Proposes To Ban Retail Investors From Trading Cryptocurrencies.
Sourced From: cryptodaily.co.uk/ 2021/02/Hong-Kong-Government- Proposes-To-Ban-Retail-Investors-From-Trading-Cryptocurrencies.
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This proposition has not been well gotten by advocates of cryptocurrency. This relocation to restrict crypto trading, is not in keeping with the relocations other significant financial jurisdictions have actually made. The Bitcoin Association of Hong Kong has specified that it believes Bitcoin ought to remain available to all Hong Kong residents:.