As per reports, the new and upcoming regulations for cryptocurrencies are going to be very strict and harsh on the crypto-users. As per the new regulations, it is expected that the entire Bitcoin (BTC) will be affected once it is implemented.
In response to the upcoming regulations, the Bitcoin Association has become active and has launched an appeal to the Hong Kong regulators. It has requested the Hong Kong regulators to reconsider introducing the new regulations around the utility of Bitcoin (BTC).
The Bitcoin Association has pointed out that the new regulation can cause hindrance in the progress and development of the cryptocurrency industry in the country. Just recently, the regulatory authorities of the Hong Kong Government announced that it was planning to ban retail cryptocurrency trading in the country.
The Government of Hong Kong confirmed that it has resorted to this option as a result of the mass money-laundering cases that are currently on the rise in the country. Therefore, the Government of Hong Kong has done this in order to do a crackdown on money laundering cases.
According to the Chinese media sources, the regulations proposed by the Hong Kong regulatory authorities may also cover Bitcoin automated teller machines.
The Financial Services and Treasury Bureau also published a paper, back in November 2020 for the regulatory consultation. In the consultation paper, The Financial Services and Treasury Bureau also covered expanding the regulatory network on Bitcoin ATMs.
The CoinAtmRadar also revealed their stats around the total number of ATMs that are currently present in Hong Kong. As per the stats, there are currently sixty-two Bitcoin ATMs that are available in the entire Hong Kong country.
During the interview conducted by SCMP, Leo Weese also argued the new regulations that are currently being considered by the Hong Kong Government. He argued that at one point, the Hong Kong Government wants to bring advancements to digital technology, and on the other, it is proposing such harsh regulations.
It has been revealed that some of the rules that are proposed in the new regulations are the ones that have already been the practice in mainland China. Mainland China is the region where it is prohibited to trade in cryptocurrencies.
At present Hong Kong is home to numerous cryptocurrency exchanges that are offering their services across the globe. Some of the major cryptocurrencies including FTX and BitFinex have their headquarters in the country. While cryptocurrency exchanges such as Huobi and OKEx have their regional offices situated in Hong Kong.
As per many analysts, if these regulations get implemented, it is going to be a hard situation for the cryptocurrency exchanges. There are possibilities that as a result of the new regulations, many cryptocurrency exchanges may move out of the country.