Hong Kong Won’t Recognize Cryptocurrency Criminal

May 7, 2018

The Hong Kong government website has lately published a report on money laundering risk assessment and terrorism financing (ML/TF) over the first third of this year. It describes all possible risks and vulnerabilities state can face as marked by the Financial Action Task Force (FATF), international organization engaged in elaborating global standards for this field.

On top of all this the document covers the issue of cryptocurrencies. After a number of studies Hong Kong police has come to conclusion that using digital currencies as payment means is not a permanent characteristic for crime. As the report clarifies, the risk of using cryptocurrencies for illegal actions like buying drugs and terrorist funding is extremely low, yet it points out that digital currencies are often used to Ponzi schemes and are highly popular among Internet scammers.

The report also explains why Bitcoin is not to be called a threat for governments and countries that do not plan imposing constraints on its citizens:

“Hong Kong is one of the world’s freest economies with a vibrant foreign currency exchange market and no capital controls. [Cryptocurrencies] 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 report thus sums it up that the country won’t see any ban introduced on crypto operations as existing laws and regulations are already broad enough. It also advises all market players being cautious and check thoroughly objects of investments.

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