In brief: Hong Kong plans sandbox for crypto exchanges

Hong Kong’s Securities and Futures Commission (SFC) will propose a regulatory regime known as a “sandbox” for crypto exchanges in the Asian financial hub, its chief executive Ashley Alder said on Thursday.

He said the SFC would [also] set out new rules under which all funds, which invest more than 10 percent of a mixed portfolio in crypto assets, will have to comply, whether or not those crypto assets are securities.

Source: Reuters

A sandbox would give cryptocurrency exchanges the ability the operate in Hong Kong with compliance waivers while working with the authorities to develop a longer term regulatory framework for the industry.

“This is essentially an opt-in approach for exchanges and platform operators, and they will first explore the conceptual framework with us in a strict sandbox environment,” said Alder.

SFC said in February it would crackdown on cryptocurrency exchanges operating in Hong Kong that break the territory’s securities laws, or don’t have the appropriate licenses.