Hong Kong has been the center of cryptocurrency news in these couple of weeks. Just earlier this week, the blackmail bitcoin of bomb threat has alerted police to undergo investigation. Rumors of Hong Kong Stock Exchange (HKEX) is being hesitant to approve IPOs of bitcoin mining companies including Canaan Creative, Ebang and Bitmain because of prolonged industry volatility.
Furthermore, Hong Kong Securities and Exchanges Commission (SFC) is seeking to tighten current cryptocurrency regulations as concerns grow across Southeast Asia with crypto-related crime and money laundering. The SFC will review cryptocurrency laws, particularly in regulations pertain initial coin offering (ICO).
People are not surprise that Hong Kong looking to tighten cryptocurrency laws, as many of the world's leading economies are reassessing their stance on crypto regulation amid this year's crypto bubbles, instability of the crypto industry and a spate of criminal activities related to cryptocurrencies. There were already signs months ago when the SFC began to warn the industry that it plans to implement tougher cryptocurrency law. Early February, the China Security Regulatory Commission warned seven cryptocurrency exchanges after receiving complaints from investors.
Hong Kong's supervision on cryptocurrency was much looser than that of mainland China which strictly bans all cryptocurrency transactions. Views on tougher regulation vary with many think it is crucial to protect the investors, while others hold that the new cryptocurrency law could create drawbacks for crypto companies in Hong Kong.
Whether Hong Kong's new regulatory policy lands well or not will yet to be determined. But undoubtedly, Hong Kong has become one of the most important regions in the Asian crypto industry.