2 years ago
Hong Kong securities regulator is considering regulating decentralized concern (DeFi) projects by subjecting them to licensing requirements.
According to Zhonghui, automatic trading services similar decentralized exchanges autumn nether the regulator’s authority. So, immoderate DEX that lists virtual assets indispensable besides use for licenses.
Zhonghui made this connection astatine the Web3 Festival successful Hong Kong.
Zhongui noted that astir DeFi projects are not decentralized due to the fact that lone a fewer radical thin to power astir tokens. He added that the fiscal regulatory bureau indispensable look beyond the statement of these projects to their substantive context.
Hong Kong has precocious stepped up activities to go a crypto hub for Asia. The authorities person made respective caller pro-crypto moves that person attracted much firms to the region.
Besides that, Hong Kong has a caller ineligible model for licensing crypto trading platforms — which volition go effectual by June.
Other countries readying DeFi regulation
Meanwhile, regulators successful the U.S. and France person conscionable released reports highlighting the request to modulate DeFi.
The French Central Bank recommended that DeFi protocols beryllium forced to incorporated and certify their astute contracts’ security.
“Players exercising effectual power implicit delicate services could beryllium required to incorporate, becoming taxable to supervision,” the study said.
The U.S. treasury section besides recommended that DeFi services comply with anti-money laundering and violent financing rules.
“DeFi services astatine contiguous often bash not instrumentality AML/CFT controls oregon different processes to place customers, allowing layering of proceeds to instrumentality spot instantaneously and pseudonymously,” the study stated.
With respective jurisdictions present looking to modulate the DeFi sector, determination are concerns astir what it could mean for the industry.
The station Hong Kong securities regulator eyes DeFi regulation appeared archetypal connected CryptoSlate.
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