The markets watchdog reported on Tuesday that Hong Kong will regulate all cryptocurrency trading platforms operating in the financial hub.
On the other hand, Hong Kong government will propose a new licensing regime, under its anti-money laundering legislation, targeting all cryptocurrency trading platforms that operate there, or target investors in the city, according to Reuters.
Moreover, dozens of cryptocurrency exchanges operate in Hong Kong, including some of the world’s largest, though many chose not to apply for a licence under the existing regime.
Earlier, PayPal announced on October, that a new cryptocurrency service will be launched in the U.S. in the coming weeks and features bitcoin, ethereum, bitcoin cash and litecoin. According to CNBC, by 2021, the company also plans to let customers use crypto to pay for things from its network of 26 million retailers.
On other hand, PayPal CEO Dan Schulman explained, that the firm hopes the service will encourage global use of virtual coins and prepare its network for new digital currencies that may be developed by central banks and corporations.
Moreover, many central banks around the world have expressed their intention to develop digital versions of their currencies in the coming years, while Facebook Inc-led the creation of a cryptocurrency project called Libra in 2019, PayPal was a founding member but dropped out after a few months.
PayPal has partnered with Paxos, a digital asset platform that embraced regulation from inception, to offer crypto services an important strategic step that allows PayPal to be lockstep in line with regulators.