Due Diligence Strategies Under Hong Kong’s New Cryptocurrency Rules

On June 1, 2023, a new regulatory regime governing cryptocurrency will come into effect in Hong Kong. Under the new rules, the cryptocurrency market will be opened to retail investors, while cryptocurrency exchanges are required to obtain virtual asset service provider, or VASP, licenses. In the past, Hong Kong’s minimal regulation over virtual assets led to an influx of digital asset investment. The recent policy shift, announced by the Hong Kong government in December 2022, is expected to further transform the city into a crypto hub.