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Tag Archives: Hong Kong Securities and Futures Commission

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The merits and demerits of Hong Kong’s SFC resolutions and their impact on the crypto industry

  By David Drake   Global popularity of cryptocurrencies is undisputable. However, differences in the way digital assets are handled and the disparities across crypto exchanges have been on the rise, making it necessary for countries to develop regulations. In Hong Kong, the Securities and Futures Commission (SFC) intends to regulate the crypto market to prevent possible digital currency fraud. Just recently, Hong Kong’s SFC stated that it will introduce new governing rules and course of actions for the crypto market. Specifically, the regulator intends to focus on digital currency exchanges and funds operations. The SFC observed that current rules do not consider digital assets as securities or future contracts and are therefore not regulated by it. This means that those dealing in digitals assets are prone to insecurities. Due to this, the SFC resolved to safeguard investor assets by including them in the regulations. In the new regulations, those ... Read More »

Why Hong Kong’s Crypto Regulations Favor Institutional Investors

  By David Drake   While the western world grapples with decisions concerning cryptocurrency and governance, the Asian community is forging ahead. Hong Kong’s Securities and Futures Commission (SFC) is not derailed by indecision. Just recently, the commission announced favorable regulations towards cryptocurrencies. The country’s financial agency unveiled a comprehensive list of rules in an unprecedented move that could see Hong Kong become a major hub for digital assets in future. The new rules are geared towards controlling funds that invest in digital assets, and by extension, the platforms they use to trade. Companies engaged in retail services will be banned from using platforms that are strictly for professional investors. Also, a crucial element of the regulation is that funds have to be licensed by the SFC if they invest in excess of 10 percent of their portfolios in digital currencies. They are required to have insurance for almost all ... Read More »

Can Hong Kong Strike a Balance Between Innovation and Investor Protection in its Crypto Regulation?

  By David Drake   The cryptocurrency industry has achieved significant milestones in recent years as it strives to go mainstream. However, for its potential to be fully realised, the industry needs to overcome several challenges. Arguably, the regulation cloud hovering over the industry is the most significant challenge there is. The industry achieved tremendous growth when it was operating as a free market, true to its decentralised values. With government intervention though, there is consensus that it would be nearly impossible to go back to such an environment going forward. This is largely attributed to the growing legitimacy of digital currencies as an investment option by governments, as well as the need to protect consumers from fraud and other vices. The challenge, therefore, will be striking a balance between regulation and the decentralised nature of the industry without stifling innovation. One regulation development initiative that has raised interest in ... Read More »

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