Hong Kong Authorities Signal Crackdown on Crypto Conversion Stores, Regulators Reveal

Hong Kong’s financial regulators are poised to tighten oversight on over-the-counter (OTC) crypto trading. As reported by Bloomberg. 

The city-state’s Financial Services and the Treasury Bureau have initiated consultations aimed at combatting fraudulent activities, terrorism financing. And money laundering within the OTC crypto conversion sector. Proposed regulations would mandate physical OTC crypto exchanges to maintain customer records and employ compliance personnel. Suspicions of aiding criminal endeavors such as investment fraud and circumvention of capital controls among crypto firms prompt the government’s action. 

Simultaneously, Hong Kong aims to regulate online crypto exchanges, with a licensing deadline already set. Chainalysis’ APAC head Chengyi Ong predicts a consolidation and reduced usage of these platforms post-regulation. However, Roger Li, co-founder of One Satoshi crypto conversion stores, foresees increased operational costs for compliance, suggesting OTC stores may need to adapt or apply for the new license.

Clever Robot News Desk 29^th February 2024