SFC in Hong Kong has emphasized the importance of the non-contravention period for VATPs to register by the June 1 deadline.
The financial authority in Hong Kong has placed an emphasis on the non-contravention period, which allows virtual asset trading platforms (VATPs) to register prior to the deadline.
The Securities and Futures Commission (SFC) has reminded investors and other stakeholders that the deadline for platforms operating under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) will expire on June 1.
The Commission reminded investors and other stakeholders of the dangers and consequences of failing to register after the registration deadline.
Non-Registration Is a Criminal Offense
The regulatory body made it clear in an announcement on May 28th that a violation of the AMLO becomes a criminal infraction, prompting the SFC to take appropriate action against the individual who committed the violation.
According to the press release, the law requires every business conducting operations in Hong Kong to either register or obtain a “deemed-to-be-license”.
In light of the aforementioned, investors are strongly encouraged to conduct business only with companies that have been granted a license by the SFC and to verify the status of the company by visiting its website.
The SFC issued a warning to companies deemed licensed, informing them that their license is still pending. Despite this, they have been operating before the legal regime was established and have made efforts to improve some rules and processes.
VATPs considered licensed must comply with all requirements. These companies do not anticipate adding additional retail customers until they adhere to these criteria.
Businesses are required to adhere to the standards and prohibit members of the Chinese mainland from using the services, according to the press release.
This includes, but is not limited to, preventing residents of Mainland China from accessing any services related to their virtual assets, and implementing all necessary measures to ensure that the controlling companies and associated parties of the VATPs have the same effect.
Hong Kong Tightens Crypto Regulation
Over the past few months, Hong Kong officials have strengthened their supervision of cryptocurrencies, claiming investor safety as a reason to prevent market collapses.
In order to control the cryptocurrency industry, the national government has issued a set of recommendations. There was a change in the regulatory framework in the jurisdiction that is considered to be crypto-friendly, and some analysts are predicting that there will be a change in mainland China in the near future.
At the same time that authorities are looking for clear standards for crypto businesses and users, global crypto regulation is beginning to take shape. As a result of the historic Markets in Crypto Assets (MiCA) regulation, legislators are working to develop more stringent regulations.