Hong Kong Securities Supervision Commission: Anti-Money Laundering Ordinance Applies to Virtual Asset Industry

It is reported that the "virtual currency to ETF" mechanism in Hong Kong has caused money laundering concerns. The industry says that KYT (Know Your Token) and other reviews are very difficult. People with mainland backgrounds are trying small-amount "virtual currency to ETF" transactions, taking this opportunity to "whitewash" their holdings of ether and bitcoin through head accounts and other forms. Some virtual coins have been deployed to virtual currency exchanges in Hong Kong, and the future will be decided according to the situation. Whether to increase capital.
In response to relevant questions, the Hong Kong Securities Supervision Commission stressed that in the operation of ETF products, every link of the entire virtual asset ecosystem, including fund companies, custodian banks, asset trading platforms, participating securities firms, etc., must be licensed or authorized institutions, and must strictly comply with the requirements of asset custody, liquidity, valuation, information disclosure, investor education, etc. The Anti-Money Laundering Ordinance of the Securities Supervision Commission also stipulates that Financial Institution Groups and designated non-financial enterprises and industry persons must comply with customer due diligence and record-keeping requirements, and the relevant requirements apply to the virtual asset industry.