Lawmakers in Hong Kong Set to Implement New Guidelines for Crypto Platforms

• Hong Kong Securities Commission Announce Regulation of crypto assets.
• New regulations and guidelines set to come into play through the commission.
• Cybersecurity and custody are just two of the main worries for the SFC head, Ashley Alder.

Recently, a regulatory framework that allows cryptocurrency platforms to be regulated was published by the Hong Kong’s Securities and Futures Commission (SFC). With these fresh set of regulations, the country is making a big step in the direction of adoption for blockchain technology.

Whilst attending the world’s first cross-border financial technology event at Hong Kong Fintech Week, Ashley Alder, SFC CEO revealed that the development of new guidelines for licensing cryptocurrency platforms.

#HongKong #SFC announces new #regulatory framework for #virtualasset #exchanges to be released later today. Watch for the release on https://t.co/ydQbi0XxDO #Crypto #cryptoasset pic.twitter.com/Mbiu5c66hr

— Malcolm Wright (@Malcolm_1111) November 6, 2019

The hefty length of the regulatory sandbox looks into custody, know-your-customer rules and the storage of digital assets like cryptocurrencies. 

According to the SFC head, cybersecurity and custody are just two of the main worries among regulators inside a market that it seemingly “vulnerable to manipulation.”

Alder said:

“Our new regulatory framework covers all of the key investor protection concerns. These include the safe custody of assets, know-your-client requirements, anti-money laundering, and market manipulation. And, it also zeros in on many of the new concepts we are getting used to, such as hot and cold wallets, forks, airdrops and the like. We will also set out the criteria for platforms to decide on the inclusion of a new virtual asset for trading.”

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