Hong Kong’s Securities Regulator Official Calls for Expanding its Supervision Scope to Crypto

To crack down on unlicensed virtual asset trading due to investors suffering huge losses.

Hong Kong Securities and Futures Commission (SFC) is talking about cracking down on unlicensed cryptocurrency trading in order to strengthen investor education.

Liang Fengyi, deputy chief executive of the Commission, said on Tuesday that in the future, the scope of their supervision should be expanded to virtual assets due to a growing number of virtual asset frauds.

Virtual assets are not securities or payment methods; as such, they do not fall within the jurisdiction of the China Securities Regulatory Commission. But with many investors have suffered huge losses, the agency believes that it is obliged to expand the scope of supervision.

According to the local publication, Fengyi noted that while developing cryptocurrencies, it is also necessary to crack down on unlicensed cryptocurrency transactions.

The SEC will also be working with the police to combat “pump and dump” fraud in the cryptocurrency field to educate the public, she said.

The city government is also expected to propose a bill that would require the service providers to apply for a license, as shared in May. Such a bill, which will be proposed in the 2021-2022 legislative session, would give the agency powers over the virtual asset service providers.

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