Hong Kong SFC To Introduce Crypto Regulation
The South China Morning Post has reported that Hong Kong’s Securities and Futures Commission (SFC) is looking at ways to introduce regulation for cryptocurrency trading platforms.
Chairman Carlson Tong Ka-shing — who will pass his position in the SFC to Tim Lui Tim-leung on Oct. 19 — said in an interview that the watchdog is not considering a ban on cryptocurrency platforms as the Chinese mainland has done, emphasizing that a total ban is not “necessarily the right approach”.
“It will not work in today’s internet world when trading can cross national boundaries. Even if we were to ban them, transactions can still be easily conducted via platforms in overseas markets,” the chairman explained further.
According to Carlson, SFC would target systems already functioning in the city, providing investors with further protection.
Cryptocurrency trading, Tong stressed, do not fall within the custodian, audit or valuation requirements under the SFC’s Securities and Futures Ordinance. They “may not qualify as securities,” the official said, suggesting the necessity for a careful regulatory approach to oversee crypto trading platforms.
“We need to see if and how these platforms can be regulated to a standard that is comparable to that of a licensed trading venue, while at the same time ensuring investors interest are being protected.”
The SFC has issued several warnings in recent months for investors to be wary of trading crypto exchanges, and to the operators, too, that they must, in turn, abide strictly to SFC regulations.
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