Hong Kong licensed attorney Gilbert NG said the SEC lawsuit could potentially affect the license application process in Hong Kong.
Gilbert NG shed light on the implications of the actions of the United States Securities Commission (SEC) on Hong Kong’s regulatory environment. NG addressed the potential impact of this approach to cryptocurrency platforms by the SEC on Hong Kong’s licensing procedures.
NG Addresses Regulatory Differences Between Two Countries
NG noted that it observed the contradictory approach taken by the SEC to Binance and Tether.
According to NG, the SEC’s request for Binance’s complete separation from the United States could have negative consequences for Binance’s operations in other regions where it may seek license approval, including Hong Kong. According to the lawyer, another important disparity is seen in the definition of securities between the USA and Hong Kong. Some cryptocurrencies may be considered security tokens in the US, but not in Hong Kong.
Since the United States does not have specific laws and regulations regulating cryptocurrencies, there is some degree of uncertainty in terms of regulatory enforcement.
While the United States has taken a stricter stance characterized by lawsuits, scrutiny and vague regulatory guidelines, countries such as Hong Kong, Japan, and the UAE have taken steps to establish clear rules and examples of compliance for crypto businesses.
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