With the increasing market irregularities in cryptocurrency, China’s government is tightening the rules for crypto traders. Recently Hong Kong’s Securities and Future Commission SFC is about to go hard on rules by putting hard regulations for digital assets.
The sudden shift kicked in because the state of Hongkong is trying to safeguard retail investors by bringing everything under a regulated system. This will add further transparency to the crypto business inside their territory.
Let’s take a dive into the newer regulations
Hongkong authorities have made it mandatory for crypto traders to obtain licenses under the new law. If they failed to obtain an authorised license they will find themselves faulty and end up giving heavy fines. Provisions are also made that one can be imprisoned for running illegal crypto trading if done huge monetary transactions. While for the operations it is necessary to keep an eye on their clients to ensure that all the regulated compliances are being followed. If not checked then with the clients the operators might also face a lifetime ban.
Secure crypto regulations
As per the director of SFC, Keith Choi, they have prioritised the importance on the implementation of crypto rules and also apply to the foreigners who operate in the mentioned jurisdiction.
Saving environment
Saving our environment is also one of the key reasons for the authorities to seek regulations on cryptocurrency. As these digital assets are not obtained by any singular authority or any governing body. While on the other side, the ecosystem of crypto networks runs on huge electricity in which miners use a large number of computers to control the temperature of the infrastructure such as a cooling system to keep it running. The use of Air conditioning as well as the heating system in different locations as per their requirements consumes incessant amount of energy which directly comes from the burning of fossil fuels.
As per the scientists, to verify every translation huge of electricity is consumed which generally comes from the power grid produced from coal. Power grids running on fossil fuels generate carbon dioxide and other harmful greenhouse gases which adds up to increasing the temperature of Earth.
The 2022 report by Climate and economics researchers done across Europe has estimated that because of Bitcoin mining 65.4 megatonnes of carbon dioxide is dumped in the environment. This data shows how these setups are endangering our environment. If you are interested to get cool and informative insights about recent tech developments do visit techmagazines to know more content like this.
Tracking of marketing platforms
Additionally, under these regulations, the crypto governing organisation will keep an eye on the unlicensed platforms which are illicitly involved in violating the state rules. The head of SFC’s Fintech department that promotes and shares unregulated as well as unlicensed traders or organisations have to face rigorous repercussions. Additionally, even the social media influencers instigating hacks to bypass security laws will be conducted as an act of offence.
In other words, we can say that even the renowned centralized crypto exchanges have blacklisted the IP addresses of Hongkong. As it is hard for foreign companies to follow and obtain permits for their platforms. The officials have released a timeline from 31st March to 1 just for getting consultation and support from regulated authorities if anyone has any issue regarding compliance.
Latest development in crypto trading
Though the Chinese government is using a large scale to regulate the crypto market, leading crypto such as Bitcoin has no massive negative effect on their trading.
As per Reuters, Bitcoin has taken a jump of 75% after the fall of FTX, a crypto trading platform and reached $27,431 during that week. The rising inflation in the US market as well as the continuous collapse of banks have motivated crypto traders to invest more in digital currencies. Even during the time of banking recession, Bitcoin has maintained an average value of $26000 dollars.
While from 1st June Hongkong SFC will start accepting applications for digital asset companies to procure their trading license. In other words, Hongkong authorities have tightened their belt to set rules for this highly unregulated crypto trading and platforms.
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