The Securities and Financial Commission (SFC) in Hong Kong is making plans to regulate cryptocurrencies to ensure that investors are safe. This announcement was made by the chairman of the commission while speaking with newsmen from the SCMP (South China Morning Post).
The Commission’s View Of Cryptos
Carlson Tong Ka-Shing the chairman of this commission while speaking at an interview revealed that the commission is not considering placing a ban on cryptocurrencies as the Chinese government has done. Ka-Shing went further to add that personally he does not think that the outright ban of cryptocurrencies and all crypto investments and trading is necessarily the best or right approach. He further states that the ban on cryptocurrencies in this internet age when more people are seeking to make transfers across borders without unnecessary delays or outrageous transaction cost is not right. He went on to state that even if the government has placed a ban these digital assets, that they would still be traded on crypto markets overseas.
Ka-Shing: the ban on cryptocurrencies in this internet age when more people are seeking to make transfers across borders without unnecessary delays or outrageous transaction cost is not right.
According to the reports, the chairman of this regulatory body or crypto watchdog Tong Ka-Shing, added that the need for a legal framework to regulate these digital assets is important and should be done right now. He further revealed that the SFC will carefully approach this crypto regulation procedure carefully as these digital assets should be classed as “new technologies” instead of securities. Although these digital assets do not meet the current requirements of the SFC, Ka-Shinge has equated them to traders. He stated that the commission needs to see if there is any way they are able to elevate the status of these new technologies so that they are able to meet up with; or be compared to licensed trading venues. While doing this, the commission will still seek ways to protect the interests of all investors.
How Exchanges In Honk Kong Have Reacted To This News
The SCMP has revealed that most of the exchanges operating in Hong Kong have wholeheartedly welcomed this idea. An example of one of these exchanges is the BitMex exchange whose CPO (Chief Operating Officer) Angelina Kwan stated that this decision by the SFC will encourage the development of a new industry. The CEO of Circle one of the prominent exchanges in Hong Kong Jeremy Allaire, while speaking to newsmen from the SCMP affirmatively stated that his exchange would work hand in hand with this regulatory body to ensure that these digital assets are regulated, as well as ensuring that investors are protected.
The Commission’s View Of ICO’s
While the SFC is making plans to regulate these cryptocurrencies, you will find it interesting to know that they do not feel this way about ICO`S. This claim is based on a report that was released by the commission last year and earlier this year. The report clearly warns investors about ICO`s, urging them to apply due diligence when investing in these projects.
While we wait for the official regulations, it is great to hear that a crypto watchdog in Hong Kong does share the same sentiments with the Chinese government when it comes to cryptocurrencies.
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