{"id":353921,"date":"2018-10-15T23:30:52","date_gmt":"2018-10-15T23:30:52","guid":{"rendered":"https:\/\/wncen.com\/?p=353921"},"modified":"2018-10-15T21:40:48","modified_gmt":"2018-10-15T21:40:48","slug":"hong-kong-to-propose-regulation-for-cryptocurrency-trading","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/ai-and-tech\/hong-kong-to-propose-regulation-for-cryptocurrency-trading\/","title":{"rendered":"Hong Kong to Propose Regulation for Cryptocurrency Trading"},"content":{"rendered":"
Hong Kong’s financial watchdog is looking to tighten investor protection by regulating cryptocurrency trading platforms.<\/p>\n
The Securities and Futures Commission (SFC), however, is limited by its legal regulatory reach of securities only, according to\u00a0Carlson Tong Ka-shing, the outgoing chairman.<\/p>\n
In his last interview before leaving the SFC, Ka-shing told the\u00a0South China Morning Post<\/a> that a ban on cryptocurrency trading “will not work in today\u2019s internet world when trading can cross national boundaries.\u00a0Even if we were to ban them, transactions can still be easily conducted via platforms in overseas markets.”<\/p>\n Taking a completely different stance from Mainland China’s full ban on digital currency trading, the SFC has only issued warnings of caution to investors.<\/p>\n However, as the market grows within the retail and institutional trading frames, the regulator faces increased pressure to put in place formal rules while being limited to securities regulation.<\/p>\n “We have to carefully consider the regulatory approach for these platforms because they are new technology and may not qualify as securities.\u00a0They do not fit in the custodian, audit or valuation requirements, for instance, normally expected under the Securities and Futures Ordinance.”<\/p><\/blockquote>\n Tong added that the SFC is evaluating the best approach to regulate cryptocurrency platforms “to a standard that is comparable to that of a licensed trading venue, while at the same time ensuring investors interest are being protected.”<\/p>\n