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Hong Kong Crypto Businesses Must Comply With Stifling Restrictions

The Securities and Futures Commission (SFC) in Hong Kong has announced new regulations for firms intending to offer retail crypto products, requiring compliance with asset custody and segregation rules. Early crypto license applicants can only list certain coins, and licensees may not advertise specific crypto assets or engage in proprietary trading or lending.

The approved regulations will prevent traders from holding stablecoins until the SFC tables new regulations. While Hong Kong's willingness to embrace crypto regulation has been welcomed by the industry, some have criticized certain requirements and questioned the cost of licenses.

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