The Hong Kong Securities and Futures Commission (SFC) announced that it is preparing rules for the licensing of cryptocurrency exchanges and businesses.
According to the reports, the new licensing regime aims to support cryptocurrency trading platforms, but not to block their activities. However, special attention will be paid to anti-money laundering (AML) and customer identification (KYC) procedures. The rules will be published in May and are scheduled to come into force on June 1.
The regulator noted that it has conducted various consultations and received over 150 different assessments and proposals from various interested companies. These responses will be used to make the new guidelines clear and useful for cryptocurrency companies.
While China has banned all cryptocurrency trading companies and activities on its mainland, Hong Kong - a special administrative region of China that has its own rules and laws for various business activities - has taken several steps to attract crypto companies on its land. New guidelines aim to make the licensing process clear and affordable.