More regulations appear to be inbound for Hong Kong.
According to sources, financial regulators in Hong Kong are looking to impose stricter controls on cryptocurrencies.
The special economic zone has continued to come under the influence of mainland China in recent years, and this trend is likely to continue well into the future.
What this will undoubtedly mean in the short term is stricter regulations, but perhaps if The CCP has a change of heart in the future—crypto currencies may enjoy looser regulations.
It is difficult to pin down what China’s Communist Party will do in the future regarding crypto, and how they will continue to assert their dominance over Hong Kong, but right now they are hostile to market oriented cryptocurrencies.
For now, here’s more on Hong Kong’s current push for crypto regulations:
— All In One #Crypto App #AutoTrading (@allinonecrypto) September 7, 2021
Singapore and Hong Kong are at the forefront of regulations over crypto exchanges. Here’s why trade surveillance and risk management will be critical https://t.co/v3vqGipJLS
— Forkast News (@Forkast_News) August 19, 2021
Coin Telegraph explained the push behind the regulations:
Deputy chief executive Liang Fengyi said the SFC is obligated to expand the scope of cryptocurrency supervision in the city-state, especially as it pertains to unlicensed trading, according to an English translation of an article published in local newspaper ETNet.
She explained that, since crypto assets are not recognized as securities or payment methods, they fall outside the jurisdiction of the SFC. As a result, many investors who have participated in the nascent asset class have suffered significant losses.
Hong Kong securities official proposes stricter oversight of crypto trading
Investing in Bitcoin and other cryptocurrencies could become more restrictive for residents of Hong Kong as local regulators look to clamp down on the asset class for various re… https://t.co/bdyt2zvBXT pic.twitter.com/qMblaatgju
— Newscrypto V͇̿I͇̿P͇̿ (@newscryptobtc) September 7, 2021
Hong Kong regulatory commission plans to fight crypto trading fraud https://t.co/qhCRbFd0Xb
— TODAY (@todayng) September 7, 2021
Ethereum Today adds:
In its public announcement today, SFC clarified that CIS offerings to the public in Hong Kong without the SFC’s authorization are prohibited. The commission further warned investors to be extra cautious if they still plan to go against the authorities and invest in an unauthorized investment scheme.
Additionally, the SFC introduced its latest ‘Suspected Unauthorised CIS Alert List’ for Investment arrangements that possess specific CIS characteristics. Investment arrangements under this list may include overseas real estate or untraditional assets and investments, like digital tokens and initial coin offerings (ICO).
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