- Know-your-customer and custody guidelines are some of the rules expected from the SFC.
- The regulations are positive for the crypto industry and investors too.
Trading platforms for virtual assets will soon come under the oversight of the Hong Kong Securities and Futures Commission (SFC). According to a report published by Reuters, the head of SFC Ashley Alder said that the move will:
“Enable virtual asset trading platforms to be regulated by the SFC, a major development which builds on a way forward I outlined at the same time last year.”
The new set of guidelines covering custody of cryptocurrencies, know-your-customer and other exchange issues will be released later on Wednesday.
The move has been welcomed as positive for the emerging industry. More investors will enter the industry because of the elements of customer protection. Companies considering to go public such as Huobi could also benefit greatly from the new set of rules.
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