Hong Kong’s Securities and Futures Commission (SFC) previously declared that they are keeping a close watch on the cryptocurrency market. According to the watchdog, the concept of cryptocurrency involves huge risks and therefore, they are constantly revising the existing laws.
The SFC is indeed taking strict action to introduce definite regulatory policies this year against local crypto exchanges, ICOs and warning the public about risks involved in crypto-investments. The cryptocurrency technology is dubious and one has to supervise the perils that can threaten the economy of the country. Hong Kong’s financial regulators are educating the public about the potential risks related to trading in cryptocurrency.
Few economists have notified that the concept of cryptocurrency is unreliable as it has no intrinsic value. Hong Kong, being an independent territory of China, has a sperate political system and is open to trading in the cryptocurrency market. Therefore, many crypto-related businesses chose to move to the more crypto-friendly Hong Kong. For example, major Chinese Bitcoin conference BitKan decided to move to Hong Kong from Beijing.
Despite Hong Kong welcoming cryptocurrency, they were cautious as they issued a warning to the public about the possible dangers. In February 2018, the SFC issued a second public warning on the potential risks of dealing with crypto exchanges and investing in ICOs, urging investors to do their due diligence and mentioned securities yet again. The SFC vowed to keep “policing” cryptocurrency and ICO markets, as mentioned in Cointelegraph.
In the recent news, Hong Kong watchdogs issued two circulars outlining new laws for crypto exchanges as well as crypto asset portfolio managers, intermediaries, and fund distributors. The watchdog expressed concern over “the growing investor interest in gaining exposure to virtual assets via funds and unlicensed trading platform operators in Hong Kong,” as reported in Bitcoin News. Overall, Hong Kong being independent of its decisions is revising the existing laws to curb the risks that the cryptocurrency market involves.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]