Hong Kong’s first step in regulating crypto comes with high costs, but exchanges are undeterred

Hong Kong’s long-awaited cryptocurrency rules kicking off a new regulatory regime for virtual assets went into effect on Thursday, which experts say is placing a greater burden on exchanges in the city but is so far not deterring business.

The city’s retail trading rules and licensing guidelines, finalised last week, represent one of the most exacting regulatory frameworks for centralised crypto exchanges in the world, as Hong Kong opens its arms to the volatile digital asset sector following a series of meltdowns last year.