Summary
TLDR: Hong Kong is cracking down on OTC crypto services to prevent illicit transactions and financial instability. New regulations require stricter customer record-keeping and monitoring, with a deadline for exchanges to secure permits by February 29. Despite concerns over fragmented regulation, Hong Kong aims to solidify its position as a global crypto hub, with revenue projected to reach $254.6 million by 2028.
Key Points
1. Hong Kong authorities are focusing on regulating over-the-counter (OTC) crypto services, which are crucial to the city’s $64 billion digital asset flow.
2. New regulations led by the customs department require OTC crypto providers in Hong Kong to adhere to rigorous customer record-keeping and enhance monitoring for misconduct, with a deadline for regulated crypto exchanges to secure permits by February 29.
3. The regulatory pivot in Hong Kong is part of a broader strategy to establish the city as a global crypto hub, with revenue in the crypto market forecasted to reach $254.6 million by 2028.