Regulators in Hong Kong is looking for opinions, especially on whether to enable authorized exchange service provider to serve retail customers and, if so, the regulations to be executed despite the proposed range of tough customer security regulation, which comprises ascertaining suitability in registering customers and asset onboarding.

The Securities and Futures Commission, the financial watchdogs in Hong Kong, discussed the proposed needs for service providers of virtual crypto assets exchange platforms. The new authorizing reign will become active on the 1st of June this year.

It will demand that all centralized digital assets dealings platforms in Hong Kong or currently advertising to Hong Kong customers be regulated by the Securities and Future Commission.

Proposed Guidelines for Authorized Securities Platforms

The proposed regulatory needs for virtual digital assets exchange platforms are related to the regulatory needs of the current administration under the Securities and Futures commission. The Securities and Futures Commission announced that it has also taken the chance to propose upgrades to several current regime needs.

The Securities and Futures Commission chief executive officer, Julia Leung, responded: as it has always been our way of life since 2018, our proposed needs for virtual assets exchange platforms comprise tough measures to safeguard customers following the same risks, same industry, and same principles.

Following the recent events and the downfall of major and leading virtual digital asset exchanges around the globe, such as FTX, this is transparent to regulators worldwide. The need for regulations in the virtual digital asset industry to ascertain customers are sufficiently safeguarded, and major effects are well governed and managed.

Closure of Business on Failure to Register with the SFC

Service providers of digital assets exchange platforms that strategize to register for a permit from the SFC, including current platforms, are urged to re-evaluate and examine their infrastructure and guidelines to prepare for the new administration.

Virtual asset service providers that do not have a strategy for registering for a permit with the SFC should start getting ready for a systematic closure of their enterprises in Hong Kong, the regulated demand.

The Hong Kong SEC strategizes to introduce lists on its website to make the public aware of the various regulatory statuses of virtual asset exchange platforms.

SEC Fines Another Public Figure

Paul Pierce, a former National Basketball player, is issued a whooping penalty for posting garbage about a yet-to-fall crypto asset exchange platform, EMAX, on a social media platform, Twitter.

However, the former NBA player forgot to mention he was being paid hundreds of thousands of dollars for posting such rubbish. Consequently, the Securities and Exchange Commission fined Mr. Paul Pierce 1.4 million dollars.

Moreover, since its launch in 2021, EMAX creators have paid celebrities such as Floyd Mayweather Junior, Paul Pierce, and Kim Kardashian to post on their Twitter handles, confirming how unique the platform was.

Ever since the asset exchange platform has cost its famous ambassadors millions while simultaneously making them less significant, in October of the previous year, Kim Kardashian agreed to pay the Securities and Exchange Commission a whopping 1.26 million dollars for her secret tweeted advancements o the virtual currency and is currently costing the former National Basketball player, Paul pierces, even more, and this figure appears to rise as years pass by.