On Feb. 26, Hong Kong's financial secretarial assistant Paul Chan stated that his administration volition strengthen its Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) policies regarding cryptocurrencies.

In his recent upkeep speech, Chan indicated that the amendments will accost recommendations made by global financial watchdog, the Financial Action Task Strength (FATF).

New regulations to affect crypto exchanges, precious metals dealers

The FATF assessed that Hong Kong was "largely compliant" with its AML/CTF guidelines post-obit a September 2022 evaluation. The assessment saw Hong Kong become the beginning jurisdiction in the Asia-Pacific region to laissez passer the FATF's appraisal.

The proposed changes to Hong Kong's AML/CTF policies have been put forward as part of the government's 2022–21 upkeep, and volition exist passed into law following a menses of public consultation.

Chan indicated that the amendments will predominantly affect cryptocurrency exchanges and remittance service providers, adding that "detailed proposals" will be published later this year.

Dealers in precious metals, stones, and jewelry will also be brought under the new AML/CTF framework.

Abu Dhabi changes crypto regulations to align with FATF

On Feb. 24, the Financial Services Regulatory Potency, ane of iii regulators overseeing the Abu Dhabi Global Market place (ADGM), appear amendments to its crypto regulations. The changes include changing the term "crypto asset" to "virtual nugget" to marshal with FATF vocabulary.

The ADGM will likewise expand its regulatory category of "Operating a Crypto Asset Business" to address other regulated activities that chronicle to crypto businesses including custody services, operating a trading facility and dealing in investments.

Abu Dhabi and Hong Kong comprise the latest jurisdictions to update their crypto regulations in response to recent FAFT directives, following South korea, Singapore, and Switzerland.