We get to hear some updates coming from Hong Kong. The country is trying to build a good cryptocurrency infrastructure and also to have regulation. Regulation is a good initiative to support the industry. Any country will try to have regulations in place to avoid unnecessary problems later. Its a growing industry so to avoid chaos later its a good practice to have regulations in place. This will create a favourable environment for cryptocurrency companies, users, and traders.
The regulatory body in Hong Kong has gone through a lengthy process. They have done this to enable issuing licences to crypto trading exchanges. A license is necessary for crypto exchanges to operate in Hong Kong. Exchanges have to be compliant with the regulations and guidelines. They have also divided crypto into 2 parts and these are - security tokens and non-security tokens. Hong Kong SFC will be managing the regulations for security tokens. Non-security tokens will be required to be compliant with the Anti-Money Laundering bill.
Hong Kong regulators have vowed to issue new licenses for crypto trading platforms after a lengthy review process.
We are in the bull market situation and this is the right time for such acts. Hopefully, it helps the country and the entire crypto ecosystem to grow. A fast pace growth is expected and in the bull run, it usually happens. With regulation in place, it will not be a problem for the people in Hong Kong. This should also encourage more people to be part of this crypto and bitcoin revolution.
Hong Kong country has pushed the final approval for licences to get approved in 2025. Earlier this was expected to be done in 2024 but there is a push from the government side. The USA is also on the list as after Trump's presidency things are expected to be smooth for the crypto community there.
Posted Using INLEO