Hong Kong Securities about Keeping ‘Close Watch’ on Crypto Sector

Hong Kong Securities about Keeping ‘Close Watch’ on Crypto Sector

Securities regulator of Hong Kong says they will be “keeping a close watch” on the crypto sector in their annual report.

On 27th of June Hong Kong’s Securities and Futures Commission (SFC) in their annual report announced that they would keep a close watch on encryption and Initial Coin Offerings (ICO).

The SFC notes that, since new technologies tend to “come with risks", they will look closely at crypto and ICOs, and intervene if appropriate. The Report indicates that the SFC took regulatory measures against crypto exchanges and the ICO issuers in Hong Kong this Year, and published two public warning to investors about the risk of investment in crypto.

The SFC Report also contains the support actions of the agency in the crypto sphere and highlights the introduction of the SFC regulatory sandbox that that allows “qualified firms to conduct regulated activities utilising financial technologies.” The SFC also reported about its work with the Investor Education Center in order to release educational materials on crypto and public campaigns on the “risks associated with ICOs and crypto currencies.”

The first statement of SFC and Circular on ICOs was released in September 2017 and second circular was published in December 2017 on the regulatory requirements for crypto currency operators. In February the SFC released another statement after taking action against crypto-related companies.

In March, the SFC halted Black Cell Technology’s ICO on the grounds that it constituted an unregistered security, with the company responsible for refunding investors in its token.

At the beginning of May, there was in a report of government of Hong Kong saying that virtual currencies such as Bitcoin (BTC) are involved in neither the money laundering nor terrorism financing.


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