Hong Kong gov: Bitcoin poses medium-low risk with regards to financial crime

THE financial and treasury services of Hong Kong had released a report on April 30 which details the status of money laundering and financing of terrorism as well the the effect that cryptocurrency has on such topics.

The FSTB stated in the report: “although there is inherent money laundering and terrorism financing vulnerability related to virtual currency.

there does not seem to be any visible impact affecting the overall risk in Hong Kong so far. The risk of virtual currency is assessed as medium-low.”

The Money Laundering and Terrorist Financing Risk Assessment Report also mentions that the FSTB, Hong Kong financial regulators, and law enforcement agencies are working together to look into risks associated with Initial Coin Offerings (ICO) and cryptocurrencies in general as well:

The Money Laundering and Terrorist Financing Risk Assessment Report mentions how different governmental bodies such as the FSTB, financial regulators and law enforcement agencies and working in partnership to dig deep into the risks associated with ICO’s and cryptocurrencies.

Part of the report states: “While we have not found substantial risks in these newly developing payment methods or commodities, this is a rapidly developing area requiring continued monitoring.”

The FTSB report also states that Bitcoin is not legal tender,t he FTSB suggests:

Because Hong Kong “is one of the world’s freest economies with a vibrant foreign currency exchange market and no capital controls  virtual currencys are therefore not as attractive as in economies where people may try to circumvent currency controls or seek refuge from a high inflation rate.

“The exchange of Bitcoin in person is not popular, domestically, the use of Bitcoin remains at a negligible level.”

The report mentions that the Bitcoin ATM’s are “not popularly used by people in Hong Kong.”

a great example of wide reliance on BTC would be Venezuela, the country is near civil war with a crumbling government and economy as they struggle with hyperinflation, as their national currency has been unstable many people now rely on Bitcoin as greater alternative.

 

 

  • Follow us on:
Recent posts
Newsletter