Hong Kong’s legislative council has added a new amendment to the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022 to accommodate the cryptocurrency industry.
The legislation will essentially introduce a licensing regime for virtual asset service providers (VASPs).
Hong Kong’s Licensing For VASPs
Under the new additions, VASPs seeking to start operations in the region will have to undergo a licensing procedure complying with AML guidelines and investor protection laws. Failing to do so may attract a fine of $5 million and imprisonment for 7 years, according to a report from Colin Wu.
A clampdown on misleading crypto advertisements is yet another aspect of the new legislation. Meanwhile, fraudulent and deceptive crypto transactions may draw penalties of $10,000,000 and imprisonment for 10 years. The new licensing regime will come into effect in June of next year.
Despite the FTX collapse sending shockwaves across the industry, Hong Kong has been fairly bull
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