Hong Kong securities official proposes stricter oversight of crypto buying and selling
A senior government for Hong Kong’s Securities and Futures Commission, or SFC, believes extra must be accomplished to deal with cryptocurrency fraud, providing clues about future steering on digital asset buying and selling within the particular administrative area.
Deputy chief government Liang Fengyi stated the SFC is obligated to broaden the scope of cryptocurrency supervision within the city-state, particularly because it pertains to unlicensed buying and selling, in keeping with an English translation of an article published in native newspaper ETNet. She defined that, since crypto belongings are usually not acknowledged as securities or fee strategies, they fall outdoors the jurisdiction of the SFC. As a consequence, many traders who’ve participated within the nascent asset class have suffered important losses.
Unlike mainland China, Hong Kong permits the buying and selling of cryptocurrencies, though the scope of transactions is below scrutiny. Government regulators within the particular administrative area have put ahead proposals to restrict cryptocurrency buying and selling to skilled traders on prime of recent licensing necessities.
As Cointelegraph reported in May, the Financial Services and the Treasury Bureau of Hong Kong are contemplating proscribing crypto entry to portfolios with a minimum of $1 million in belongings. If handed, the brand new pointers would limit crypto entry to roughly 93% of the town’s inhabitants.
Related: Binance to limit derivatives buying and selling for Hong Kong customers
Multiple crypto exchanges have both halted or restricted buying and selling exercise in Hong Kong over the previous few months. In June, Hong Kong brokerage Futu introduced it was halting crypto futures buying and selling over regulatory points. In August, Binance moved to dam derivatives buying and selling for native merchants.