Hong Kong’s Securities and Futures Commission Requests Regulation to Address Crypto Fraud
Hong Kong’s Securities and Futures Commission (SFC) has expressed some concerns over the current lack of regulation in the country for the crypto space. According to the entity, the country is currently severely lacking in regulation, especially concerning dealing with fraud in this space.
According to the chief of the SFC Thomas Atkinson, there are several problems which are associated with the current regulation (or the lack of a proper regulation). Some of them are the uncertainty around Initial Coin Offerings (ICOs) and crypto trading in the country.
He also emphasized that the structure behind many crypto exchanges today is completely beyond the scope of what the SFC is capable of regulating. Atkinson worked for the Ontario Securities Commission before, known as the largest securities enforcement entity in the country, so he is pretty knowledgeable about the process needed in order to do this.
The official also took his time to urge the authorities to create a new approach that can be used to monitor activities related to the blockchain technology to protect it from fraudulent activity. According to him, the ecosystem needs rules that will be clear for all the involved (in order not to stifle innovation) but also effective in order to forbid the illegal actors in the middle.
Atkinson’s statement has followed new guidance provided by the SFC, which was issued by the regulator back in March 2019. In this new statement, the regulator affirmed that Security Token Offerings (STOs) are very likely to be considered securities, so they should be put under security laws.
The regulators also talked about how crypto exchanges should be formally regulated in the future, something that would make the ecosystem more secure for investors.
Regulation Is A Widespread Issue
Hong Kong is far from being the only place in which regulation has become an issue. Countries from all around the world are currently having all sorts of problems trying to regulate the crypto industry.
For instance, Russia and the United States are two countries which are currently notorious for their difficulty in regulating this space. Russia often postpones the decision about how to legalize Bitcoin (or not) while the issues faced by the U. S. regulators are notorious and range from lack of definitions to tokens from difficulties on how people should pay taxes.