The company is launching this service in preparation to apply for a licence VASP licence in accordance with Hong Kong's Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022 that will take effect on 1 June 2023. By launching this new mobile app, the company wants to express its commitment to supporting Hong Kong’s regulatory regime while supporting traders during the market transition.
The app will allow verified Hong Kong users to instantly buy and sell cryptocurrencies via 11 spot pairs, as well as convert cryptocurrency safely with over 30 currencies. Other noteworthy features include portfolio management, wallet balances, transaction history, deposits, and withdrawals, as well as market trends that can be tracked easily via watchlists and real-time data.
In the company press release, BitMEX officials talked about Hong Kong as an important cryptocurrency innovation hub and expressed their belief that the SFC's regulatory framework will provide standards for virtual assets that are crucial for this fast-growing asset class. They also expressed their optimism that Hong Kong will fulfil its goals of becoming a world-leading Web3 role model city and potentially the Web3 hub for China in the following years.
The BitMEX Hong Kong app is operated by BitMEX's affiliated local entity, HDR BMEX Limited, and it was developed to function under the transitional arrangement under the Hong Kong VASP regime. Existing Hong Kong-based users will be automatically transferred to BitMEX Hong Kong from 29 May 2023. As for user funds will still benefit from protection through BitMEXʼs custody and security practices.
In April 2023, BitMEX joined the TRUST protocol to improve its Travel Rule compliance capabilities. The Travel Rule Universal Solution Technology (TRUST) is a Travel Rule compliance solution that was created by a group of US-based virtual asset service providers to help companies comply with the US Travel Rule.
The Travel Rule mandates that virtual asset service providers (VASPs) need to collect and exchange identifying information on the originator and beneficiary when conducting transactions with other obliged financial entities. As the rule is being implemented on a wider scale around the globe, it’s becoming increasingly important for VASPs to be able to exchange required data with each other safely and securely.
In the company press release, BitMEX officials talked about joining TRUST and how it can help the company to maintain compliance internationally whilst demonstrating its commitment to the protection of customer privacy and security. Joining TRUST represents BitMEX’s latest efforts to expand its travel rule compliance capabilities in addition to its existing implementation of VerifyVASP and Notabeneʼs sunrise plan.
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