The Hong Kong Securities and Futures Commission (SFC) has sent warning letters to crypto exchanges as well as initial coin offering (ICO) issuers. The SFC in its warning letter said that they are ready to pass cases of potential fraud to the Hong Kong police for investigation. Carlson Tong Ka-Shing, chairman of the SFC is considering new crypto exchange regulations to tighten the protection for investors and also to keep a close watch on the crypto industry in the city.
Tong Ka-Shing feels that it is important to safeguard investors while ensuring that the local crypto industry remains robust and in line with the law. The crypto exchanges in Hong Kong have been warned that regulators are watching them closely especially after investors complained of late, of malpractices ranging from misappropriation of assets to market manipulation.
Some of the complainants claimed that the technical breakdown of the crypto exchanges, manipulation of the market or misappropriation of their assets have caused them significant losses. The SFC said in its statement that several complaints have been registered against ICO issuers’ alleged fraudulent or unlicensed activities. The SFC’s chief executive, Ashley Alder also added that they will continue policing the crypto market and enforce rules wherever necessary, as reported on South China Morning Post.
The exchanges are quite similar to the traditional stock exchanges in a lot of ways with the centralized exchange platforms being usually operated by a single organization or a group of people. The SFC stated that while there are a handful of exchanges operating out of the country, very few are in line with the current crypto exchange regulations.
Tong Ka-Shing recently warned unregulated crypto exchanges in Hong Kong openly by saying, “We are watching you!”. He will soon be handing over the reins to the soon-to-be new chairman of SFC, Tim Lui Tim-Lueng later this week, as reported on CryptoGlobe.[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. ]