Hong Kong and Abu Dhabi amend cryptocurrency regulations in conjunction with Financial Action Task Force

Source of this article: Cointelegraph Chinese

Author: Samuel Haig

Compilation: Ringor

On February 26, Hong Kong Financial Secretary Chen Maobo said that the Hong Kong government would strengthen anti-money laundering (AML) and counter-terrorism financing (CTF) policies related to cryptocurrencies.

Chen Maobo said in his recent budget speech that the amendment will be carried out under the recommendations of the Financial Action Task Force (FATF), a global financial regulator.

New regulations will affect cryptocurrency exchanges and precious metals traders

The FATF assessed in September 2019 that Hong Kong “substantially meets” its “AML / CTF” guidelines. The assessment shows that Hong Kong is the first jurisdiction in the Asia Pacific region to pass FATF accreditation.

Hong Kong ’s proposed amendments to the “Anti-Money Laundering / Terrorist Financing” policy have been proposed as part of the Hong Kong government ’s 2020-2021 budget. After a period of public discussion, the proposal will pass and become a law.

Chen Maobo said that these amendments will mainly affect cryptocurrency exchanges and remittance service providers, adding that "the detailed proposal" will be announced later this year.

Precious metals, gems and jewelry dealers will also be included in the new AML / CTF framework.

Abu Dhabi revises cryptocurrency regulations to match FATF

On February 24, the Financial Services Regulatory Authority, one of three regulators that oversaw Abu Dhabi's Global Market (ADGM), announced amendments to its cryptocurrency regulations. These amendments include changing the term "cryptocurrency assets" to "virtual assets" to align with the FATF glossary.

ADGM will also expand its regulatory category of “operating cryptocurrency asset business” to address other regulated activities related to the cryptocurrency business, including custody services, operating trading facilities and investment transactions.

Following South Korea, Singapore and Switzerland, Abu Dhabi and Hong Kong are the latest jurisdictions to update cryptocurrency regulations under the FAFT directive.