Hong Kong Prepares Sweeping Rules to Foil Stealthy Crypto Purchases

(Bloomberg) — 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. Some crypto shops are suspected of facilitating banned activity, for instance Chinese nationals flouting…