Hong Kong Financial Secretary States His Administration Will Strengthen Its AML And CTF Policies Reg
Paul Chan, the Financial Secretary of Hong Kong, stated that his administration will strengthen its Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) policies regarding cryptocurrencies.
Hong Kong and Abu Dhabi Change Crypto Regulations to Align With FATF 👉 #CoinTelegraph #CryptocoinFactory #Bitcoin https://t.co/X5VHXUblUj — CryptocoinFactory (@cryptofactory) February 27, 2020
On February 26, it has been reported in his recent budget speech that he indicated the amendments will address recommendations made by the global financial watchdog, the Financial Action Task Force (FATF).
However, the FATF assessed that Hong Kong was “largely compliant” with its AML/CTF guidelines following a September 2019 evaluation. The assessment saw Hong Kong become the first jurisdiction in the Asia-Pacific region to pass the FATF’s appraisal.
The proposed changes to Hong Kong ’s AML and CTF policies have been put forward as part of the government’s 2020–21 budgets and will be passed into law after a period of public consultation.
Likewise, Chan indicated that the amendments will predominantly affect cryptocurrency exchanges and remittance service providers by adding that “detailed proposals” will be published later this year.
It has been analyzed that dealers in precious metals, stones, and jewelry will also be brought under the new AML/CTF framework.
On February 24, the Financial Services Regulatory Authority, one of three regulators overseeing the Abu Dhabi Global Market (ADGM), announced amendments to its crypto regulations. The changes include changing the term “crypto-asset” to “virtual asset” to align with FATF vocabulary.
Also, the ADGM will expand its regulatory category of “Operating a Crypto Asset Business” to address other regulated activities that relate to crypto businesses including custody services, operating a trading facility and dealing in investments.
Thus, Abu Dhabi and Hong Kong comprise the latest jurisdictions to update their crypto regulations in response to recent FAFT directives, following South Korea, Singapore, and Switzerland.