Will China Trigger a Bull Run with New Laws & Regulations?
China is the second largest market in the world by nominal GDP and the largest when it comes to purchasing power parity. As such, any positive change in Chinese regulation regarding cryptocurrencies could have wide effects.
Earlier today, we have reported about the change regarding the Chinese Government's sentiment on cryptocurrency mining. It appears that even more change regarding regulations will come from China.
Just Moments ago, the Securities & Futures Commission (SFC) of Hong Kong published new guidelines.
New SFC Regulatory Framework for Cryptocurrencies in Hong Kong
It appears that this is more bullish news for bitcoin & cryptocurrencies. The SFC has just released their regulatory framework on cryprocurrency exchanges.
It appears that cryptocurrency exchanges in Hong Kong are fully permissible & legal but will be required to work within new regulations. The SFC will provide licensing to exchange to operate within the territory of Hong Kong.
The regulations outlined are not too outlandish or different from U.S. or European requirements. The only point of real interest is that it appears client transactions will be checked & privacy based coins will be strictly forbidden as per clause 64:
"When adopting these types of tracking tools, a platform operator is reminded that it has primary responsibility for discharging its AML/CFT obligations, and must be aware that the tools for back-tracing have limited reach and that their effectiveness can be compromised by anonymity-enhancing technologies or mechanisms, including mixing services and privacy coins, specifically designed to obfuscate the transaction history."
Is China Next?
The amount of blockchain positive news coming out of China over the last moth has been huge. It seems at times that the Chinese government is more progressive on new technologies than the U.S. government. One could hope that we will see a similar statement for the Chinese mainland sometime in the future.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado