Introduction
The Seoul Web3.0 Festival, hosted by the Seoul Metropolitan Government, took place from July 31 to August 2 at Dongdaemun Design Plaza (DDP). Organized in collaboration with the Seoul Design Foundation and Baobab Partners, the event featured diverse activities including hackathons, demo days, and NFT forums. BiFinance Exchange joined global blockchain institutions and enterprises as an invited participant.
BiFinance's Compliance-Focused Approach
As an emerging institutional-grade digital asset trading platform, BiFinance maintains a strict compliance strategy, closely monitoring policies across jurisdictions. Participation in the Seoul Web3.0 Festival provided firsthand insights into varying global perspectives on Web3 regulation. Notably, BiFinance submitted its Hong Kong VASP license application in June 2023, highlighting contrasting regulatory approaches between Hong Kong and South Korea—both advanced Asian economies.
Comparative Analysis: Crypto Regulations in South Korea vs. Hong Kong
South Korea's Regulatory Framework
- 2017-2018: Implemented ICO bans and preliminary crypto regulations via the Financial Services Commission (FSC).
- 2020: Passed the Specific Financial Transactions Information Act, providing legal clarity for cryptocurrencies.
- 2021: Enforced Travel Rule compliance and introduced a 20% tax on annual crypto gains exceeding ₩2.5 million, legitimizing crypto income.
Hong Kong's Evolving Stance
- 2013: Prohibited Bitcoin as legal tender following China's restrictive policies.
2023:
- June 1: Enacted Guidelines for Virtual Asset Trading Platform Operators.
- Dual licensing system: Combines Securities and Futures Ordinance for security tokens and Anti-Money Laundering Ordinance for non-security tokens.
Investor Protections: Key Differences
| Aspect | South Korea | Hong Kong |
|---|---|---|
| Regulatory Bodies | Digital Asset Committee (2022), Virtual Asset Risk Committee (2022) | Securities and Futures Commission (SFC), Hong Kong Monetary Authority (HKMA) |
| Key Legislation | Virtual Asset User Protection Act (effective July 2024) | Guidelines for VATP Operators (effective June 2023) |
| Retail Access | Limited by stringent exchange listing standards and taxation | Permitted for "large virtual assets" meeting dual-index criteria |
BiFinance's Global Compliance Strategy
Licensing Milestones:
- Obtained U.S. MSB license (April 2023).
- Hong Kong VASP application in progress (June 2023).
User Safeguards:
- Mandatory KYC and multi-factor authentication.
- Rigorous asset listing reviews to ensure quality and diversity.
- Vision: Advocate for standardized global crypto regulations to foster institutional adoption and market stability.
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FAQs
Q: How does South Korea's Travel Rule affect crypto exchanges?
A: Exchanges must share transaction data for transfers over ₩1 million to combat money laundering.
Q: Can retail investors trade all cryptocurrencies in Hong Kong?
A: Only tokens listed on two approved indices qualify for retail trading per SFC guidelines.
Q: What is BiFinance's stance on regulatory uncertainty?
A: BiFinance supports phased regulatory adoption to balance innovation with investor protection.
👉 Learn more about BiFinance's compliance
Disclaimer: This content is for informational purposes only and does not constitute financial advice.