Hong Kong Prepares Sweeping Rules to Foil Stealthy Crypto Purchases

  • Curbs loom for shops and websites that swap cash for crypto
  • City is seeking to add more licensed digital-asset exchanges
An advertisement for the unlicensed JPEX crypto platform at a subway station in Hong Kong in 2022.Photographer: Paul Yeung/Bloomberg
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Dotted across Hong Kong are small shops that convert between cash and crypto with few questions asked, a modern-day echo of the city’s freewheeling past. Soon, many may shut under a looming crackdown.

Officials estimate 450 shops, automated teller machines and websites in Hong Kong offer such services. They are a key slice of over-the-counter or OTC crypto trades, which accounted for the bulk of the $64 billion in digital assets that flowed through the city in the year through June, according to Chainalysis.