Hong Kong Gov’t Report Suggests Bitcoin Poses ‘Medium-Low’ Risk In Money Crime

The Hong Kong Economic Companies and Treasury (FSTB) launched a report yesterday, April 30, on the position of income laundering (ML) and terrorism funding (TF). The report concluded that virtual currencies (VC), like Bitcoin (BTC), are not significantly included in both style of monetary crime.

The FSTB notes that “although there is inherent ML/TF vulnerability associated to VCs”:

“There does not feel to be any seen effect affecting the overall possibility in Hong Kong so far. The hazard of VCs is assessed as medium-low.”

The report does point out the use of cryptocurrencies in Ponzi strategies and cybercrimes – precisely mentioning the WannaCry assault – citing 167 Bitcoin (BTC) connected police studies from 2013-2017.

The Dollars Laundering and Terrorist Funding Risk Evaluation Report also mentions that the FSTB, Hong Kong economic regulators, and legislation enforcement businesses are doing work jointly to appear into threats connected with Preliminary Coin Offerings (ICO) and cryptocurrencies in standard as effectively:

“While we have not uncovered substantial challenges in these freshly producing payment procedures or commodities, this is a fast producing place necessitating ongoing checking.”

In accordance to the report, cryptocurrencies are not thought of lawful tender in Hong Kong. The FTSB indicates that since Hong Kong “is one of the world’s freest economies with a lively overseas forex exchange industry and no money controls […] VCs are consequently not as desirable as in economies wherever persons may well try out to circumvent currency controls or find refuge from a substantial inflation rate”:

“The trade of Bitcoin in man or woman is not well-liked […] Domestically, the use of Bitcoin continues to be at a negligible stage.”

The report writes that the Bitcoin ATMs in Hong Kong are also “not popularly employed by people today in Hong Kong.”

As a comparison, in Venezuela – a state whose financial state is at this time suffering from hyperinflation – lots of citizens have begun to rely on Bitcoin as a extra secure store of price as as opposed to their nationwide currency.

In February of this year, Hong Kong’s Securities and Futures Commission (SFC) warned opportunity crypto buyers that they would retain “policing” cryptocurrency and ICO markets. In mid-March, the SFC halted an ICO in Hong Kong and made the organization return the revenue raised, on the grounds that it was an unregistered investment scheme. Additional just lately, in mid-April, the SFC mentioned that the type of fundraising accomplished via ICOs is better suited to enterprise capital resources.


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