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Hong Kong Leads Asian Nations in Creating Bitcoin Regulations Amid $2.26 Trillion Crypto Boom: Tech: Tech Times
From Quincy JonTech Times June 24, 2024 12:40 PM EDT
Hong Kong prepares to regulate bitcoin business with other Asian nations. This weekend, the HKSAR Legislative Council created a writing panel cryptocurrency legislation.
Hong Kong authorities give high priority to appeals from Web3 businesses. Financial risks aside, the global cryptocurrency industry is currently worth $2.26 trillion.
This was announced by Johnny NG Kit-Chong, member of the Legislative Council of Hong Kong subcommittee focused on cryptography on social media, according to Gadgets 360. The panel will examine the rules of Web3 and virtual resources.
Furthermore, the panel will promote Web3 and artificial intelligence within a regulatory framework. To increase market confidence, the Virtual Assets Subcommittee protects investors and consumers. Other tasks include studying the uses and risks of stablecoins in Hong Kong and implementing regulatory procedures that maintain financial stability without limiting innovation.
Virtual assets have increased demand for professional custodian services; therefore, the subcommittee will review custodial techniques and regulations.
The group wants public input on Web3 aspects, including decentralized autonomous organizations. Kit-Chong said he will review them and offer them to the administration through the Legislative Council.
Hong Kong’s Securities and Futures Commission (SFC) said last month it will monitor cryptocurrency exchanges for AMLO compliance. Hong Kong approved Bitcoin and Ether ETFs in April, following the United States, to boost interest from institutional investors.
(Photo: PETER PARKS/AFP via Getty Images)
Central Plaza (C-Top), the AFP’s regional headquarters in Hong Kong, seen on August 9, 2023.
Taiwanese Crypto Firms Form Alliance to Fight Fraud
In Taiwan, near Hong Kong, Taiwanese cryptocurrency companies have established an association promote self-regulation rules for the digital asset sector, according to Cointelegraph.
The XREX exchange said that 24 cryptocurrency firms established the Taiwan Virtual Asset Service Provider (VASP) on June 13. The vice president of the association is XREX Chief Revenue Officer Winston Hsiao, while BitoPro founder and CEO Titan Cheng chairs it. The organization promotes and facilitates strict and fair laws to build the global blockchain financial sector.
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An XREX member says the group will cooperate with the Taiwanese government “to jointly combat fraud and other criminal activities.” Additionally, the cryptocurrency industry will offer technology, infrastructure and expertise to create a “cooperative military platform” and formulate “international transfer regulations” in line with the country’s travel rules to combat money laundering.
Singapore identifies ‘higher risk’ of cryptocurrencies in money laundering schemes
Separately, Singapore authorities classified cryptocurrency-related operations as “higher risk” in a report, prompting the banking sector to strengthen money laundering procedures amid concerns about illegal cash flows.
The investigation shows that cryptocurrency operators, gemstone and metal traders and business service providers are also taken into consideration vulnerable to financial fraudas reported by Nikkei Asia.
In the 126-page document, regulators warn Singapore’s banking sector of the growing dangers of cross-border crypto transactions, highlighting Bitcoin and Ether. This follows a major money laundering crime in a city-state that occurred more than a year ago.
Executive Director of the Monetary Authority of Singapore’s Anti-Money Laundering Department, Thong Leng Yeng, stressed that the measure aims to maintain Singapore’s reputation as a “trustworthy hub” in the region.
According to their investigation, there has been an increase in reports of suspicious digital token transactions and foreign requests for assistance in virtual asset crimes.
Singapore arrested 10 passport holders from China, Turkey, Cambodia, Cyprus, Vanuatu, Dominica and St. Kitts and Nevis in its biggest money laundering probe last August. This was followed by the confiscation or freezing of more than $3 billion in Singapore assets. The court convicted all 10 initial suspects and further links emerged.
Singapore closely scrutinizes cryptocurrency participants for money laundering and terrorist financing. After the virtual currency market bust of 2022, he looked further into digital asset companies.
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