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JUST IN: Hong Kong Government Eyes Restricting or Prohibiting Licensed Crypto Businesses’ Operations

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Fri, 05/21/2021 - 10:48
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Yuri Molchan
It has just been reported that Hong Kong securities regulator may be empowered to prohibit operations of licensed crypto service providers
JUST IN: Hong Kong Government Eyes Restricting or Prohibiting Licensed Crypto Businesses’ Operations
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Chinese media 8BTC has just tweeted that the Hong Kong government is considering an option to empower the local financial operations watchdog—the Securities and Futures Commission—to restrict or forbid licensed companies that provide services related to digital currencies from operating.

The same goes for their associated entities, the tweet says.

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Hong Kong is allegedly going to restrict or prohibit licensed crypto businesses

Overall, conducting a regulated crypto business in Hong Kong without a license is subject to a fine of around $650,000 (HK $5 million) and a prison sentence of five years.

Should the offender continue to operate, thus breaking the law, another fine of HK $100,000 would follow.

Carrying out regulated virtual asset activities without a licence is liable to a fine of HK$5 million and imprisonment for seven years; And, in the case of a continuing offence, a further fine of HK$100,000 for each day during which the offence was continued.

Related
Institutions Prohibited from Doing Cryptocurrency Business in China: Insider Colin Wu

Earlier, U.Today reported that three associations connected with the People's Bank of China have issued a warning to local financial institutions not to conduct or be involved in any sort of crypto-related business.

This news made Bitcoin plunge from the $40,000 level, shedding almost $10,000.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.