The proposed legislation will also include dealers in precious metals and stones (DPMS).
In June, the Anti-Money Laundering and Counter-Terrorist Financing Bill 2022 was published in the official government order in Hong Kong. Now this amendment was sent further seeking approval from upper administration. The bill would help in governance of the crypto market in the country and now presented to the Legislative Control of China’s members.
Creators of this amendment are looking to introduce a licensing regime for virtual asset service providers or VASPs. Moreover, the similar licensing amendment will also cover the registration of dealers in precious metals and stones (DPMS). The primary goal of this bill is to put obligations of anti-money laundering and counter terrorist fianance on those business which operates in these two sectors mentioned earlier.
For instance, if there are entities that deal with cryptocurrencies and anticipate launching their own trading platform, then these firms would need to obtain a license from the Securities and Futures Commission of Hong Kong. Further, they would also need to fulfill several other requirements.
Additionally, the proposal of amendment also took the Financial Action Taks’s (FATF) recommendations into account. This is due to the fact that the entity is known to set the global standards within the same field.
Managing Director of Bitstamp Asia-Pacific region, Andrew Leelarthepin noted the new requirements in an article. The article published in South China Morning Post outlined that the VASPs’ new requirements are comparable to those that similarly apply to financial services sector’s institutions and they will be also compelled to meet the similar requirements for financial adequacy.
Further, he also describes his opinion where he thinks that crypto firms are also a vital part of the financial system of Hong Kong. He added that after the amendment, the VASPs are expected to fall under the regulations of similar standards as their institutional clients. Leelarthepin said that this law treats VASPs as community organizations across the financial services sector.
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