Odaily News It has been revealed that Hong Kong's "virtual currency to ETF" mechanism has caused money laundering concerns. The industry said that it is very difficult to conduct KYT (Know Your Token) and other reviews. Some people with mainland backgrounds are trying small-scale "virtual currency to ETF" transactions, taking this opportunity to "launder" their own Ethereum and Bitcoin through dummy accounts and other forms. They have deployed some virtual currencies to Hong Kong's virtual currency exchanges and will decide whether to increase capital in the future depending on the situation. In response to relevant issues, the Hong Kong Securities and Futures Commission emphasized that in the operation of ETF products, every link in the entire virtual asset ecosystem, including fund companies, custodian banks, asset trading platforms, participating securities firms, etc., must be licensed or authorized institutions, and must strictly comply with asset custody, liquidity, valuation, information disclosure, investor education and other requirements. The Securities and Futures Commission's "Anti-Money Laundering Ordinance" also stipulates that financial institutions and designated non-financial enterprises and industry personnel must comply with customer due diligence and record keeping regulations, and the relevant regulations apply to the virtual asset industry. (Sing Tao Daily)