Chinese media 8BTC has just tweeted that the Hong Kong government is considering an option to empower the local financial operations watchdog—the Securities and Futures Commission—to restrict or forbid licensed companies that provide services related to digital currencies from operating.

The same goes for their associated entities, the tweet says.

Hong Kong is allegedly going to restrict or prohibit licensed crypto businesses

Overall, conducting a regulated crypto business in Hong Kong without a license is subject to a fine of around $650,000 (HK $5 million) and a prison sentence of five years.

Should the offender continue to operate, thus breaking the law, another fine of HK $100,000 would follow.

Carrying out regulated virtual asset activities without a licence is liable to a fine of HK$5 million and imprisonment for seven years; And, in the case of a continuing offence, a further fine of HK$100,000 for each day during which the offence was continued.

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Earlier, U.Today reported that three associations connected with the People’s Bank of China have issued a warning to local financial institutions not to conduct or be involved in any sort of crypto-related business.

This news made Bitcoin plunge from the $40,000 level, shedding almost $10,000.