The Hong Kong’s Securities and Futures Commission (SFC) is set to explore all avenue through which it can regulate the crypto community within the country, particularly cryptocurrency exchange platforms operating within the country.
SFC will not Ban Crypto Trading
The Securities and Futures Commission (SFC) has made it know that it has no plans to ban the functioning of crypto exchange within its borders, but it is of the strong belief that a proper regulation of their activities is needed.
The lack of proper regulations and laws aimed at the digital asset class has made overseeing the actions of cryptocurrency exchanges within the country by the SFC quite problematic. This lack of regulations restricts the watchdog to security asset class monitoring alone. This explains why the authority is so keen on putting a regulation in place for the cryptocurrency industry.
The Chairman of the SFC, Carlson Tong Ka-shing states that:
“They do not fit in the custodian, audit or valuation requirements, for instance, normally expected under the Securities and Futures Ordinance. But no other international market currently has a comprehensive regulation framework for these cryptocurrency 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.”
Hongkong will not Follow China’s Steps
Tong Ka-shing, has also made it clear that the authority won’t be following the footsteps of China in handling the crypto industry.
He further noted that since cryptocurrency trading is not fixed to a particular region, it is still possible for interested traders to make use of a foreign platform in order to trade.
In light of this, the authorities have issued several warnings reminding investors to be cautious while trading Crypto. The SFC also made sure to remind cryptocurrency exchange operators to follow existing SFC rules and regulations.