Hong Kong to Start Checking Over-the-Counter Crypto Asset Trading for Money Laundering
The Hong Kong Financial Services and Treasury Department (FSTB) has begun collecting opinions from local government representatives and market participants on its draft law, which introduces regulation of over-the-counter trading of virtual assets.
The FSTB intends to tighten control over the trading of virtual assets by extending the anti-money laundering and terrorist financing (AML) rules, as well as the mandatory licensing regime, to crypto traders providing over-the-counter digital asset trading services. All operators will be required to obtain licenses from the Commissioner of Customs and Excise Duties (CCE).
Licensees will be allowed to make transactions with assets only on registered sites, and clients of over-the-counter crypto traders will have to provide sufficient evidence of ownership or control over their crypto wallets, including personal data.
At the same time, licensed over-the-counter traders will be prohibited from trading virtual assets that do not have the approval of the Hong Kong Monetary Authority (HKMA).
