Chairman of Hong Kong’s Security Watchdog To Propose Crypto Regulation

Chairman of Hong Kong’s Security Watchdog To Propose Crypto Regulation

The chair of the Hong Kong’s Securities and Futures Commission (SFC) has affirmed that the agency is set to introduce new regulation that would protect investors. The chairman has originally spoken to a local media outlet, South China Morning Post.

Carlson Tong Ka-Shing, chairman of the SFC has affirmed that the agency is against a total ban, which was the stance taken by mainland China. According to him, it would simply not work very well as the internet has created trading that works across national boundaries and even if the cryptos were banned it would be still easy to do it on overseas markets via the web.

Because of this, the chairman believes that the best approach for this situation is to regulate the crypto exchanges with a more liberal tone, but protecting the investors. He deems the creation of a legal regulatory framework to be really necessary, but the laws cannot be too severe or they would not work well.

He defends that cryptos should not be treated as securities, so they do not fall under the current requirements of the SFC. Because of this, it is important to see if the platforms can be regulated in a way that is compatible with a licensed trading venue while ensuring the interest of the investors.

The media outlet that originally reported the story has affirmed that local leaders of the market had a very positive view of the solution. Circle’s CEO Jeremy Allaire has affirmed that his company would work with the government while Angelina Kwan from Bitmex has affirmed that this effort can help in the creation of a new industry within the country.

While Hong Kong is far from having the draconian stance that mainland China has on cryptos, it should be noted that the city is not really supportive of Initial Coin Offerings (ICOs). Twice before the regulatory agencies of the country have warned its investors on the dangers of investing in cryptos via ICOs, as they are not regulated and can be dangerous.

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