Security Regulator in Hong Kong to Adjust Crypto Regulations
It was reported that the SFC in Hong Kong is currently looking into regulation changes among multiple local cryptocurrency platforms. The outgoing chairman of SFC, Carlson Tong Ka-shing, has explained that this move is likely to constrict the security of the investor.
What This Means
Technically-speaking, SFC is currently confined by the legal regulatory extent of securities alone. Tong has demonstrated that the organization needs to look into its regulatory approach very carefully, in order to decide if such new technology-based dealings can qualify under securities or not.
Tong, whose post will be handed over to Tim Lui Tim-leung as of October 19, also explained that the company doesn’t see totally banning such platforms as a necessary solution. He says that such a decision may not even work with the nature of today’s internet, in which trading can easily go beyond national borders. A ban will not prevent transactions overseas.
Hong Kong is seeing multiple crypto-exchanges popping up, operated by agencies that handle full operation, support, and security. Users have to pay a certain fee to have access, but such exchanges are still unregulated.
Recently, regulators have been issuing multiple warnings to operators so that investors proceed with caution while trading using these platforms. They are asked to make sure they abide by SFC rules and regulations.
Tong also explained how the organization is quite firm on getting formal regulations in place amid increasing the popularity of trading in bitcoin and various other cryptocurrencies.
Other operators are happy with such a move. BitMEX’s COO Angeline Kwan showed support and would work on the new regulations alongside the SFC. Furthermore, founder and CEO of Crypto Unicorn Circle, Jeremy Allaire, said that Hong Kong offers OTC trading in crypto assets like bitcoin as well as Ethereum, and that they are quite aware of the fact that they operate under little regulation or none at all.