Hong Kong Securities Official Proposes Stricter Oversight of Crypto Trading
Article By : Sam Bourgi 9/7/21
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 reasons.
“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.”
Although Hong Kong still allows Crypto trading unlike the rest of China. Regulators have taken additional steps to slow institutionally licensed brokers from entering the space as well.
Hong Kong brokerage Futu announced it was halting crypto futures trading over regulatory issues.
In August, Binance moved to block derivatives trading for local traders.
Regulations being considered by Hong Kong Securities Officials may end up preventing up to 93% of the cities population from using cryptocurrencies.