Hong Kong Financial Regulator Plans To Introduce Rules For Crypto Sphere
The Hong Kong Securities and Futures Commission (SFC) plans to introduce rules regarding the crypto sphere, the chair of the department stated in his interview with the South China Morning Post.
Carlson Tong Ka-shing, the head of the commission, whose term of office ends on October 19, stressed that the regulator does not consider the crypto ban, as the authorities of the mainland China have done. According to him, the prohibition on digital assets does not seem a far-sighted decision.
In today's world of Internet technologies, nothing can be achieved only with simple bans. Trading crosses state boundaries, and transactions can be easily carried out with the help of foreign platforms, Carlson Tong Ka-shing states.
The official expressed confidence that a legislative basis is needed to regulate the crypto sphere. In turn, the SFC should carefully approach this issue, since crypto platforms are emerging technologies and cannot be regarded as securities. Preferably, they need to be equated with traders.
Firstly, it is necessary to determine whether it is possible to regulate these platforms as a standard licensed trading venue, and secondly, to protect investors, the SFC head added.
Representatives of the cryptocurrency exchanges in Hong Kong expressed approval for such an opinion of the official. Angelina Kwan, COO at BitMex, believes that the regulator will assist in the development of the new industry, and Jeremy Allaire, the Circle CEO, stated that his firm will work closely with the commission.
As previously reported, crypto traders from China found the way to bypass the ban on the trading of digital assets within the country.