Proposed regulations targeting Hong Kong’s blockchain industry could have far-reaching consequences for the crypto derivatives market, according to new research from Messari.io.
In a report published on Wednesday, researcher Mira Christanto said the Special Administrative Region of Hong Kong, which happens to be the dominant market for crypto futures trading, could be clamping down on unregulated exchanges as part of a broader push for more governance.
The researcher cited a recent proposal from the Hong Kong Securities and Futures Commission, or SFC, that would require all crypto businesses to fall under anti-money laundering rules. This is a significant departure from just one year ago when the SFC announced it would only regulate companies in the ‘securities’ space.
Previously, the SFC only regulated assets that meet the legal definition of securities or futures — a definition that excluded cryptocurrencies.
As Cointelegraph reported earlier this month, the Hong Kong government has proposed to bring all cryptoassets under the oversight of its