The Securities and Futures Fee (SFC) of Hong Kong introduced it can replace its insurance policies on digital forex gross sales and necessities “in mild of the most recent market developments and enquiries from the trade.”
In an Oct. 20 discover, the SFC said that underneath the up to date pointers, sure digital forex merchandise will solely be obtainable to skilled traders. As well as, intermediaries within the crypto area “ought to assess whether or not purchasers have data of investing in digital belongings” previous to dealing with any transactions.
“Though digital belongings are gaining popularity in some elements of the world, the worldwide regulatory panorama stays uneven,” mentioned the SFC. “The dangers related to investing in digital belongings recognized by the SFC again in 2018 proceed to use.”
The up to date necessities think about digital belongings “advanced merchandise” underneath the SFC and topic to the identical pointers as comparable monetary merchandise. The fee particularly mentions crypto exchange-traded funds and merchandise issued exterior Hong Kong as examples of advanced merchandise.
Associated: Less than 50% of Hong Kong retail crypto investors aware of relevant regulations: Survey
Many crypto customers in Hong Kong are nonetheless reeling from the scandal surrounding the JPEX crypto trade. In September, the SFC introduced that it had obtained greater than 1,000 complaints associated to JPEX, with users claiming losses totaling tens of millions of {dollars}. Native police later arrested six JPEX workers for working an unlicensed crypto trade.
It’s unclear if SFC’s up to date insurance policies are the direct results of the occasions surrounding JPEX, however the regulator mentioned in September that it will increase its efforts to maintain crypto traders knowledgeable of dangers. In October, the Hong Kong Police Drive and SFC formed a working group geared toward monitoring and investigating potential unlawful actions involving digital belongings.
Journal: Bitmain’s revenge, Hong Kong’s crypto rollercoaster: Asia Express
