The outgoing chairman of Hong Kong’s securities regulator has – in contrast to China – ruled out a complete ban on domestic cryptocurrency exchanges, suggesting official polices instead.
Hong Kong’s Securities and Futures Fee (SFC) is drawing programs in reaction to the growing hunger for cryptocurrencies like bitcoin among the retail investors and traders – by regulating the sector.
Speaking to the South China Early morning Publish in a report on Monday, outgoing chairman Carlson Tong Ka-shing insisted that autonomous, self-governing administrative region south-east of mainland China will not follow the latter’s tactic with an outright ban on the cryptocurrency sector.
“We do not feel imposing a whole ban on these platforms is automatically the right strategy,” the senior official advised the SCMP, remarking that traders will find means circumvent all obstacles.
“Even if we have been to ban them, transactions can nonetheless be simply done by means of platforms in overseas marketplaces,” Tong extra.
Instead, the SFC is searching to usher in a official regulatory framework for domestic cryptocurrency trading, even if the sector falls past its purview as the authority’s get to only extends to securities.
Cryptocurrency trading, Tong pressured, do not drop inside of the custodian, audit or valuation necessities beneath the SFC’s Securities and Futures Ordinance. They “may not qualify as securities,” the official stated, suggesting the requirement for a very careful regulatory method to oversee crypto trading platforms.
“We will need to see if and how these platforms can be regulated to a standard that is comparable to that of a accredited buying and selling location, when at the same time making certain buyers desire are becoming shielded.”
The recommendation has been welcomed by domestic exchange operators in Hong Kong. The report cites Circle, with a base of operations in Hong Kong, and BitMEX, which hired a previous regulator as its functions main soon after moving into some of the world’s most costly office environment areas, looking forward to the regulations encouragingly.
The Hong Kong crypto marketplace has been scrutinized by the securities regulator thoroughly in modern many years. Before in March, the authority shut down an preliminary coin presenting (ICO) citing “potential unauthorized marketing actions and unlicensed controlled activities.” The next thirty day period, SFC deputy chief July Leung labeled lots of ICOs as “dubious, down correct frauds”
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