Skip to main content

Hong Kong Securities Regulator Promises to Regulate Crypto Investment Funds

Hong Kong Securities Regulator Promises to Regulate Crypto Investment Funds

The Securities and Futures Commission (SFC) of Hong Kong has claimed that it will include crypto funds under its regulatory umbrella.

The SFC issued a statement on November 1, 2018, laying out its new approach for regulating virtual assets in the future. The SFC granted that there are many inherent risks in investing in a new space like cryptoassets and set out to address these risks through new regulatory action.

The statement showed a willingness to adapt the existing regulations around investing to conveniently and decisively affect crypto as well, staying away from either making these sorts of assets a specific new class of assets or attempting to discourage virtual assets altogether.

Unlike mainland China, which has displayed a certain aversion toward private cryptocurrencies, the autonomous region of Hong Kong is apparently taking a different approach. This has led many crypto companies to move out of mainland China, choosing instead to ramp up operations within the region of Hong Kong alone.

This stance of adapting the laws to include virtual assets and asset funds reflects an attitude that the economic model of investments and transactions is still fundamentally the same, with the main dangers coming from the uncertain atmosphere of new crypto markets.

In addition to releasing the statement on their general intentions, the SFC also released a circular for intermediaries on the same day. In this circular, the SFC claimed that it has “observed investors’ growing interest in funds which invest in ‘virtual assets’” and, to this end, that it wishes to provide some helpful guidance toward intermediaries.

The circular included information about how intermediaries can deal with cryptoassets and still remain compliant with existing regulations, including a series of pointers for fund managers and daily operations, information that customers are privy to and more.

From these recent releases, it appears the SFC is using its status as Hong Kong’s main financial regulator to create a crypto-friendly environment in as painless a manner as possible, and that Hong Kong will act favorably to these sorts of assets in the immediate future.






This article originally appeared on Bitcoin Magazine.

Popular posts from this blog

The Basics of Cryptocurrency and the Way It Works

In the times that we're living in, technology has made unbelievable advancement as compared to any time in the past. This evolution has redefined the life of man on almost every aspect. In fact, this evolution is an ongoing process and thus, human life on earth is improving constantly day in and day out. One of the latest inclusions in this aspect is cryptocurrencies.Cryptocurrency is nothing but digital currency, which has been designed to impose security and anonymity in online monetary transactions. It uses cryptographic encryption to both generate currency and verify transactions. The new coins are created by a process called mining, whereas the transactions are recorded in a public ledger, which is called the Transaction Block Chain.Little backtrackEvolution of cryptocurrency is mainly attributed to the virtual world of the web and involves the procedure of transforming legible information into a code, which is almost uncrackable. Thus, it becomes easier to track purchases an…

Forex MegaDroid - The Trading Robot That Applies Two Trading Strategies

It is important for novice traders to gain the basic knowledge of Forex trading at the very beginning of their attempts. After you get the rough ideas of what those charts, tables and axis mean, then you should study in details about which trading style suits you the most. Currency trading involves completely different styles. People should opt for their own strategies, but basically there are two primary types of analysis: the technical and the fundamental. A few traders would choose one of the two, some will combine them, others just follow what the robot tells them. Forex Megadroid belongs one of the few automated programs that applies both trading strategies. Forex traders who choose to use technical analysis always base their analyzes on the currency market trend. They read charts and recognize the common patterns for the price movement. Different traders may employ various reporting system to make the analysis easy to read or update. For the users of technical analys…

Virtual Currency Games

Every little boy's (and many grown men's) dream of making a living by playing video games is edging closer to reality. The recent release of HunterCoin and the in-development VoidSpace, games which reward players in digital currency rather than virtual princesses or gold stars point towards a future where one's ranking on a scoreboard could be rewarded in dollars, and sterling, euros and yen.The story of the millionaire (virtual) real estate agent... Digital currencies have been slowly gaining in maturity both in terms of their functionality and the financial infrastructure that enables them to be used as a credible alternative to non-virtual fiat currency. Though Bitcoin, the 1st and most well known of the crypto-currencies was created in 2009 there have been forms of virtual currencies used in video games for more than 15 years. 1997's Ultima Online was the first notable attempt to incorporate a large scale virtual economy in a game. Players could collect gold coins …