Hong Kong’s securities regulator seems to be stepping up efforts to manage cryptocurrency exchanges concerned with preliminary coin choices (ICOs).
In a press release launched Friday, Hong Kong’s Securities and Futures Commission (SFC) revealed it has despatched warning letters to seven cryptocurrency exchanges advising that sure tokens being traded on their platforms could also be outlined as securities. Though the names of the exchanges weren’t disclosed, the SFC indicated they’re both based mostly in or related to Hong Kong, and among the many prime 20 in quantity globally.
According to the notice, the transfer is a part of a wider effort by the SFC to warning buyers in regards to the dangers of buying and selling cryptocurrencies, one which started extra mildly with a warning on the doable dangers of the ICO fundraising mannequin on Sept. 5 of final 12 months.
Notably, the SFC mentioned that the inquiry could lead to additional motion, however that to this point the exchanges notified all responded to the inquiry.
“Most of these cryptocurrency exchanges either confirmed that they did not provide trading services for such cryptocurrencies or took immediate rectification measures, including removing relevant cryptocurrencies from their platforms,” the discharge reads.
The SFC has additionally written to seven unnamed ICO organizers which are soliciting buyers from Hong Kong and whose tokens are thought-about as securities by the company.
Stepping again, the transfer follows the SFC’s partnership with the Hong Kong authorities, one which lately discovered the 2 businesses launching a public marketing campaign to coach residents on potential threat, fraud and hacking points concerning cryptocurrency.
Going ahead, the company mentioned it is not going to bear additional violation or repeated offense to Hong Kong’s securities legal guidelines.
“We will continue to police the market and enforce when necessary,” mentioned Ashley Alder, the SFC’s Chief Executive Officer. “But we are also urging market professionals to do proper gatekeeping to prevent frauds or dubious fundraising and to assist us in ensuring compliance with the law.”
Hong Kong panorama picture through Shutterstock
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