Hong Kong licensed lawyer Gilbert NG make clear the implications of the United States Securities and Exchange Commission’s (SEC) actions on Hong Kong’s regulatory landscape. NG highlighted a number of key factors that underscore the distinct strategy taken by the SEC in the direction of cryptocurrency platforms and its potential affect on Hong Kong’s licensing procedures.
More Strict Crypto Regulations In Hong Kong?
SEC’s actions may doubtlessly impression the license utility course of for Binance and different platforms within the area. NG observes the contrasting therapy of Binance and USDT (Tether) by the SEC. While the SEC has demanded Binance’s full departure from the United States, this enforcement motion might have repercussions for Binance’s operations in different areas, together with Hong Kong, the place they might be looking for licensing approvals.
Another important disparity lies within the definition of securities between the United States and Hong Kong. Certain cryptocurrencies could also be deemed safety tokens within the United States, whereas they might not fall below the identical classification in Hong Kong. Currently, Hong Kong restricts the acquisition of safety tokens to skilled buyers solely, limiting entry for retail buyers.
Hong Kong has allowed permit crypto corporations and exchanges to use for licenses beginning June 1. The administration has additionally allowed retail buyers to commerce high cryptocurrencies similar to Bitcoin and Ethereum below safeguards of the Hong Kong Securities and Futures Commission.
Read About HK Enabling Retail Investors..
Crypto Regulatory Landscape Differences
United States lacks particular legal guidelines and rules governing cryptocurrencies, leaving a level of uncertainty by way of regulatory enforcement. While the United States has taken a stricter stance, characterised by lawsuits, scrutiny and unclear regulatory tips, international locations like Hong Kong, Japan, and UAE have taken steps to ascertain clear guidelines and compliance measures for crypto companies.
CoinGape reported that Hong Kong is ready to obtain its first spot Bitcoin ETF, whereas the US SEC stays reluctant to approve one.
Recently, Binance CEO CZ additionally welcomed the First Digital USD (FDUSD) stablecoin launched by Hong Kong-headquartered custodian and belief firm First Digital. While the SEC’s stance in the direction of Binance and its broader enforcement actions might have an effect on licensing functions in Hong Kong, the town’s well-established regulatory framework gives a steady surroundings for digital asset transactions.
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