Hong Kong SFC to Introduce Crypto Regulation

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Total News – Atlanta, GA 10/15/2018. The Securities and Futures Commission (SFC) in Hong Kong has announced that it will introduce crypto regulation in its jurisdiction to tighten investor protection.

In an interview, current chair Carlson Tong Ka-shing told South China Morning Post (SCMP) that SFC is not considering a total ban on cryptocurrency platforms as what China has done.

"We do not think imposing a total ban on these platforms is necessarily the right approach, and it will not work in today's internet world when trading can cross national boundaries," said Tong, who is due to hand over the SFC's reins to Tim Lui Tim-leung on October 19.

He also said that SFC is technically restricted by its legal regulatory reach of securities only. He noted that SFC is going to carefully consider the regulatory approach because these platforms are "new technology and may not qualify as securities."

"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."

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