A few changes will be made to the crypto-related Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) policies, in an attempt for better supervision of the sector. 

Specifically revealed by Paul Chan – the financial secretary of Hong Kong – the suggestions proposed by the Financial Action Task Force (FATF) – the department in charge of world-level financial supervision – will be taken into account, in the changes to the policies. 

The FATF reportedly disclosed via an evaluation report last year, that the compliance level of Hong Kong, regarding the department’s AML/CTF guidelines, has met the preset standards. This means Hong Kong was the first jurisdictional region, across Asia-Pacific, to have been appraised by the FATF. 

The proposed amendments to the AML/CTF guidelines was put on the table, as part of government’s 2020–21 budget, and will be officially effective after a reviewing and consulting period from the general public.

Chan believed the changes will have a large impact on crypto exchanges and remittance service providers. Further details will be disclosed later this year, Chan added. 

The Financial Services Regulatory Authority – one of three regulatory body overseeing the Abu Dhabi Global Market (ADGM) – has also revealed changes to its existing crypto legislation, with the term “crypto asset” will be granted a new definition – “virtual assets” – to follow rules set by the FATF. 

The ADGM will also establish more supervising responsibility to different fields, nominally custody services, operating a trading facility and dealing in investments, rather than restricted to “Operating a Crypto Asset Business”.