Hong Kong is preparing to regulate the bitcoin business with other Asian nations. This weekend, the HKSAR Legislative Council created a panel to write crypto legislation.
Hong Kong authorities place a high priority on Web3 business appeals. Financial hazards aside, the global crypto sector is currently worth $2.26 trillion.
Johnny NG Kit-Chong, a member of the HKSAR Legislative Council, announced the crypto-focused subcommittee on social media, according to Gadgets 360. The panel will examine Web3 and virtual asset rules.
Moreover, the panel will promote Web3 and AI within a regulatory framework. To boost market confidence, the virtual asset subcommittee protects investors and consumers. Other tasks include investigating stablecoin uses and hazards in Hong Kong and implementing regulatory procedures that maintain financial stability without restricting innovation.
Virtual assets have increased the demand for professional custody services; hence, the subcommittee will examine custody techniques and regulations.
The group wants public input on Web3 aspects, including decentralized autonomous organizations. Kit-Chong said he would review them and offer them to the administration through the Legislative Council.
Hong Kong's Securities and Futures Commission (SFC) said last month that it will audit crypto exchanges for AMLO compliance. Hong Kong approved Bitcoin and Ether ETFs in April, following the US, to promote institutional investor interest.
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Central Plaza (C-Top), AFP's regional headquarters in Hong Kong, is seen on August 9, 2023.
Taiwan Crypto Companies Form Alliance to Fight Fraud
In Hong Kong's neighbor Taiwan, Taiwanese cryptocurrency firms founded an association to promote self-regulatory rules for the digital asset industry, per Cointelegraph.
The XREX exchange said that 24 crypto businesses founded the Taiwan Virtual Asset Service Provider (VASP) Association on June 13. The association's vice chair is XREX Chief Revenue Officer Winston Hsiao, while BitoPro founder and CEO Titan Cheng chairs it. The organization promotes and facilitates rigorous and fair laws to build the global blockchain financial industry.
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One XREX member that the group will cooperate with the Taiwan government "to jointly combat fraud and other criminal activities." Moreover, the crypto industry will offer technology, infrastructure, and expertise to establish a "cooperative military platform" and formulate "international transfer regulations" in line with the country's Travel Rule to combat money laundering.
Singapore Identifies Crypto 'Higher Risk' in Money Laundering Schemes
Separately, Singapore's enforcement authorities classified cryptocurrency-related operations as "higher risk" in a report, pushing the banking industry to strengthen money laundering procedures amid worries about illegal cash flows.
The investigation finds that crypto players, precious stone and metals traders, and corporate service providers are all considered vulnerable to financial fraud, as reported by Nikkei Asia.
In the 126-page paper, enforcement authorities warn Singapore's banking industry about rising cross-border crypto transaction dangers by highlighting Bitcoin and Ether. This follows a major city-state money laundering bust over a year ago.
Monetary Authority of Singapore Anti-Money Laundering Department executive director Thong Leng Yeng stressed that the measure aims to maintain Singapore's reputation as a "trusted hub" in the region.
According to their investigation, there has been an increase in suspicious digital token transaction reports and foreign requests for assistance in virtual asset crimes.
Singapore arrested 10 passport holders from China, Turkey, Cambodia, Cyprus, Vanuatu, Dominica, and St. Kitts and Nevis in its greatest money laundering investigation last August. It was followed by the confiscation or freezing of over $3 billion in Singaporean assets. The court convicted all 10 initial suspects, and further links have emerged.
Singapore scrutinizes crypto participants for money laundering and terrorism funding. After the 2022 virtual currency market failed, it scrutinized digital asset firms further.
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