Hong Kong government to require license for Bitcoin exchanges PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Hong Kong government to require license for Bitcoin exchanges

Hong Kong government to require license for Bitcoin exchanges PlatoBlockchain Data Intelligence. Vertical Search. Ai.

The Hong Kong Securities and Futures Commission, in what appears to be another crackdown on freedoms enjoyed by citizens of the city-state, announced plans to have Bitcoin exchanges operating there be subjected to the regulatory act of licensing.

The agency looks to assure proper enforcement of the ruling and compliance of targeted parties by imposing heavy fines and tough prison sentences on violators, with the latest decision following the confirmation of the Hong Kong government of the plans to bar retail investors from trading cryptocurrency.

According to Bitcoinist, part of the ruling stated, “A HK$5 million (US$644,054) fine and up to seven years of imprisonment,” will be leveraged as a deterrent for non-compliant and unlicensed activities.

Bitcoin as criminal conduit?

Last week, Hong Kong’s Financial Services and Treasury Bureau released its report regarding anti-money laundering and since then, authorities have stepped up their anti-Bitcoin campaign. The agency is looking to make legislative proposals that are at par with the standards of the Financial Action Task Force – the responsible part for the revised guidelines on how member states should look at cryptocurrencies.

Coin Center Research Director Peter Van Valkenburgh referred to said recommendations as an undemocratic process and are just a means for more, warrantless mass surveillance.

Suppressing Bitcoin, cryptocurrency in Hong Kong

Cryptocurrency exchange OKEX director Lennix Lai criticized the decision to license Bitcoin exchanges, saying the new licensing regime will be more burdensome for entities who have been offering trading services “that fall under the definition of regulated activities but without a license.”

Some experts, however, believe that regulatory restrictions such as licensing exchanges can always be met with alternative ways and means.

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/blockchain/hong-kong-government-to-require-license-for-bitcoin-exchanges/

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