Hong Kong has officially implemented a comprehensive legal framework to regulate cryptocurrency trading, positioning itself as a major hub for digital assets in Asia.
The new regulations, overseen by the Securities and Futures Commission (SFC), require all crypto exchanges operating in Hong Kong to obtain a license and adhere to strict anti-money laundering (AML) and Know Your Customer (KYC) protocols.
The framework also includes provisions for investor protection, such as limiting retail access to highly volatile assets and requiring transparency in token listings.
This move is part of Hong Kong’s broader strategy to attract fintech companies and foster innovation while ensuring market stability and protecting investors. The framework has been well-received by industry players, who see it as a sign of growing regulatory maturity in the region.
