Hong Kong Regulatory Body on How to Regulate Crypto Markets
The Securities and Futures Commission of Hong Kong, also known as SFC, set to introduce cryptocurrency regulation to protect investors.
SFC head Carlson Tong Ka Shing have entered the final days of his tenure at the institution, as he is set to pass chairman desk to the Tim Lui Tim Leung on 19th of October.
Shing has revealed in the recent interview that they are not planning to implement a ban towards cryptocurrencies. Shing said he doesn’t think it is the right approach as he said:
“It will not work in today’s internet world when trading can cross national boundaries. Even if we were to ban them, transactions can still be easily conducted via platforms in overseas markets.”
Shing also added they need to regulate crypto exchanges as he named this change as a necessity. According to SFC’s head, the regulatory body hoping to protect investors as he said cryptocurrencies currently not sophisticated in the SFC’s guidelines. He went onto say
“We need to see if and how these platforms can be regulated to a standard that is comparable to that of a licensed trading venue, while at the same time ensuring investors interest are being protected.”
According to local press, Hong Kong-based exchanges based have welcomed this latest quotes. One of them is crypto margin trading platform Bitmex’s chief operating officer Angelina Kwan. Kwan said with the right approach, SFC can create a very healthy industry for all parties concerned. Also, Circle’s CEO Jeremy Allaire said they are open to coordination with the regulatory body in order to create guidelines for companies to thrive based in the city.
SFC has previously warned investors about ICO’s twice last year, just like the many other countries. But their approach is different to China’s. Hong Kong trying to create a friendly sphere but they are also doing the right thing by setting tough rules for fraudsters.