Building a Trustworthy Crypto Ecosystem: Gate.io's Perspective on Regulatory Compliance

2023-03-13, 04:35

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As the cryptocurrency industry continues to grow and evolve, regulatory compliance has become an increasingly important topic. Recently, the Securities and Futures Commission (SFC) of Hong Kong released a proposal for a new crypto license that is expected to guide the trading of digital assets in the region.

I am very excited about Hong Kong. Having obtained the TCSP License in HK, Gate Group is also preparing for a crypto license and fine-tuning Gate HK, a new platform tailored to serve HK's growing crypto market, stay tuned.

Here I wanted to explore the importance of regulatory compliance in the cryptocurrency industry, and our preparations for the new crypto license in Hong Kong.

## What is the new crypto license in Hong Kong?
The new crypto license in Hong Kong is a proposal by the SFC that will require all centralised crypto trading platforms to obtain a license in order to operate in the region. The new rules encompass topics such as safe custody of assets, know-your-customers, cybersecurity, risk management, anti-money laundering/counter-financing of terrorism, and preventing market misconduct. Additionally, proposed rules on digital asset trading would allow retail investors to access "large-cap tokens" through approved exchanges. The SFC has not yet specified which cryptocurrencies but indicated it could include <a href="/id/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> (BTC) and Ether (ETH). The goal of the license is to ensure that cryptocurrency companies are operating in a safe and secure manner, and to protect investors from fraud and other forms of misconduct.

Gate Group's preparations for the new crypto license
Hippo FS, the Hong Kong-based counterpart of Gate.io, has obtained the Trust or Company Service Provider (TCSP) license last August, enabling the company to provide virtual asset custodian services. Following the TCSP license acquisition, Gate.io joined closed-door discussions with regulators on the future of cryptocurrency and exchanges in Hong Kong and participated in several events to discuss regulation and promote blockchain education. At Gate Group, we are committed to complying with relevant regulations and ensuring that our users have a safe and secure trading experience. After obtaining the TCSP License in Hong Kong, Gate Group is now in the process of fine-tuning and planning for Gate HK, a new entity tailored to serve Hong Kong's growing crypto market. We see the new crypto license as a crucial step for our growth and expansion in the region, and are working closely with regulators to ensure that we are fully compliant with all relevant regulations.

Why regulatory compliance is key to the future of cryptocurrency
Regulatory compliance is important for the cryptocurrency industry for several reasons. First, complying with regulations can help build trust and credibility in the industry, which is crucial for attracting new users and investors. Second, working closely with regulators can help to ensure that the industry grows in a safe and sustainable manner, without the risks of fraud and other forms of misconduct. Finally, complying with regulations can also help to open up new markets and opportunities for cryptocurrency companies, as regulators are more likely to work with companies that are fully compliant with their regulations.

## The new Mecca for cryptocurrency in Asia
Hong Kong is a global strategic market for Gate Group, not only because Hong Kong is the hub for many financial institutions and investors, but more importantly, the industry-leading regulatory regime of Hong Kong helps boost confidence for the whole industry and provides additional stability for investors.

The new crypto license in Hong Kong is an important step for the growth and development of the cryptocurrency industry in the region. At Gate Group, we are committed to complying with all relevant regulations and ensuring that our users have a safe and secure trading experience. We believe that regulatory compliance is key to the future of cryptocurrency, and we will continue to work closely with regulators to build a more sustainable and trustworthy cryptocurrency ecosystem.

**Author: Lin Han**
This article represents only the views of the researcher and does not constitute any investment suggestions.
Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.

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