Hong Kong to Introduce Licensing for Crypto Platforms Through AML Law

Hong Kong to introduce licensing for crypto platforms through AML law. Amendments designed to govern the cryptocurrency market in Hong Kong have been presented to the members of the Legislative Council of China’s special administrative region. The Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022, which was published in the government gazette in June, needs their approval in two readings to become law. The authors of draft seek to introduce licensing for virtual asset service providers (VASPs) and registration for dealers in precious metals and stones (DPMS). The goal is to impose anti-money laundering and counter-terrorist financing obligations on the businesses operating in the two sectors. Entities working with cryptocurrencies that want to launch a trading platform, for example, would have to obtain a license from the Hong Kong Securities and Futures Commission (SFC) and fulfill a number of requirements.