Hong Kong has changed its virtual asset service providers (VASP) regulations.
Hong Kong has long positioned itself as the world’s trade gateway to China. Last October, officials talked about their ambition to become an international virtual asset hub. The city was one of the first to introduce a regulatory licensing regime for fund managers and exchanges trading digital assets. Hong Kong continues to implement changes on the way to its goal.
Hong Kong Brings New Regulation for VASPs
Hong Kong lawmakers passed a law introducing a licensing arrangement for virtual asset service providers (VASP).
The Money Laundering and Counter-Terrorism Financing Bill imposes traditional client due diligence and record keeping requirements on VASPs when performing certain transactions.
The new rules require financial institutions to better track customers’ purchases of crypto assets. It also includes establishing penalties for the fraudulent sale of products related to digital assets.
Hong Kong, which wants to be the center when it comes to crypto assets, plans to enact new rules for VASPs from June 1, 2023.
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