Regulators in Hong Kong intend to set a strict precedent for the cryptocurrency sector within their region. The Securities and Futures Commission (SFC) of Hong Kong has issued a warning against unregistered cryptocurrency exchanges in the region.
As per the notification, the crypto exchanges in Hong Kong operational without a trading license need to comply with the regulatory requirements. The last date for compliance has been set as June 1st by the regulatory authorities.
SFC has maintained that Hong Kong has claimed that unlicensed crypto trading forums in the area may engage in illegal practices. To this effect, the state has declared a punishment in the form of criminal charges for the defaulters.
The notification was published recently which means that maintaining that some trading firms have made false claims of submitting for registration in Hong Kong.
The regulators have also posted an announcement regarding the cryptocurrency exchanges that have made false claims about filing for registration. As per the official notification, any type of such claim can lead to imprisonment and prosecution in accordance with the criminal code of conduct.
Regulators have also maintained that unlicensed crypto enterprises have established new crypto enterprises and make claims about applying for registration with the regulators.
However, as per the SFC, various services and products offered by these crypto companies are not in compliance with Hong Kong laws. SFC rules have become effective starting 1st June.
Meanwhile, the companies that still do not have a license are directed to apply for registration. The regulators have maintained that remaining operational without a license is considered a criminal offense.
Animoca co-founder Yat Siu claims that China is going to pave the way for cryptocurrency adoption in Hong Kong. He maintained that China has identified Web3 as a major sector of technology to compete against the United States. He was attending the Ethereum Community Conference on 19th July.
During his speech, he quoted the Web3 Whitepaper published by the Chinese government in May this year. Siu claims that the essence of the document entails that Web3 is the future of the internet.
In this context, he claimed that the stakeholders in the sector should not overlook the fact that Hong Kong has recently permitted retail crypto trading. He revealed that even though mainland China has not covered cryptocurrencies in the White paper but the state is allocating a massive budget towards the development of the Web3 sector.
The co-founder maintained that other Asian nations such as Japan, Korea, and China are all looking to develop their Web3 prowess as a way to intercept the US tech hegemony.
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