As of June 1, 2023, Hong Kong’s new regulations governing cryptocurrency will come into effect. With the introduction of these rules, the cryptocurrency market will be opened up to retail investors, and exchanges must obtain a Virtual Asset Service Provider, or VASP, license. Since 2017, the city’s financial regulatory body, the Securities and Futures Commission, has adopted a mostly hands-off approach to the digital assets sector. Despite this, the government has recently taken steps to ensure that the crypto marketplace is in compliance with the new regulations.
In light of these changes, businesses operating within the cryptocurrency space must take a proactive approach to compliance. Companies must develop comprehensive due diligence strategies and policies to ensure that they are able to meet the requirements of the new regulations. Additionally, firms should stay abreast of all regulatory developments in the city and be prepared to adjust their operations accordingly. By taking the necessary steps to adhere to the new requirements, businesses in Hong Kong will be able to continue to operate and thrive in the digital asset market.