Hong Kong’s legislative council has passed a new amendment to its anti-money laundering (AML) and terrorist financing system to include virtual asset service providers. Unlike most other regulators around the globe, Hong Kong has used the FTX collapse as a way to mitigate regulatory risks associated with centralized exchanges. There has been a growing demand to bring crypto exchanges and service providers under the purview of law and subject them to strict AML and investor protection requirements. Related: Could Hong Kong really become China's proxy in crypto? Hong Kong has been actively working towards establishing a well-thought regulatory groundwork for the nascent crypto market. A policy proposing a regulatory framework and risk-based regulatory direction was published by the Hong Kong government in October under the title ‘Policy Declaration on the Development of Virtual Assets”. Source: Cointelegraph