• Wed, 20 Mar 2019, 02:51 AM
  • All times are UTC
  • Edition:
    International
Link copied

Hong Kong SFC seeks to regulate crypto funds and trading platforms

Photo: SCMP

Fri, 02 Nov 2018, 03:14 am UTC

The Hong Kong Securities and Futures Commission (SFC) has announced that it plans to bring crypto portfolio managers and distributors of cryptocurrency funds under its regulatory net.

The regulator said that it will adopt new measures within its regulatory remit to protect those who invest in cryptocurrency funds. This includes imposing licensing conditions on investment funds which intend to invest 10 percent or more of the gross asset value of their portfolio in “virtual assets.”

The SFC further clarified that the licensing requirements will apply irrespective of whether virtual assets meet the definition of "securities" or "futures contracts".

In September 2017, the regulator issued a statement explaining that digital tokens offered in an initial coin offering (ICO) may be subject to securities laws of Hong Kong depending on the facts and circumstances. In its latest release, it noted that many virtual assets currently do not meet the definition of "securities" or "futures contracts" under the Securities and Futures Ordinance (SFO).

“As such, managing funds solely investing in virtual assets which do not constitute “securities" or "futures contracts" does not amount to a "regulated activity" as specified under the SFO,” it added.

Ashley Alder, the SFC’s Chief Executive Officer, said that the measures will help protect investors’ interest either at the fund management level, at the distribution level, or both.

"We hope to encourage the responsible use of new technologies and also provide investors with more choices and better outcomes,” Alder added.

In addition, the SFC has also set out a conceptual framework for the potential regulation of cryptocurrency trading platforms. It said that it will explore whether crypto trading platforms are suitable for regulation in the SFC Regulatory Sandbox.

To that end, it said that it will observe the operations of interested trading platform operators and their compliance with proposed regulatory requirements in the Sandbox environment. Accordingly, it would consider granting a license to these platforms and putting them under its close supervision.

<Copyright © TokenPost. All Rights Reserved. >

The commenting service is available only after having logged in.
More
  • Bitcoin (BTC) $4,038.70 (-0.18%)
  • Ethereum (ETH) $139.03 (-0.80%)
  • XRP (XRP) $0.316000 (-0.63%)
  • Litecoin (LTC) $59.55 (-1.79%)
  • EOS (EOS) $3.73 (-0.62%)
  • Bitcoin (BTC) $4,038.70 (-0.18%)
Mar 19, 2019 (Tuesday)
11:32
Crypto wallet Ledger Nano S receives CSPN certification from French cybersecurity agency
10:43
CoinMarketCap adds Flipside’s Fundamental Crypto Asset Score to its platform
09:55
Crypto exchange Bithumb plans to lay off 50 pct of employees
08:55
Japan to implement new rules for cryptocurrency margin trading
07:08
U.S. National Pork Board partners with ripe.io to pilot blockchain technology
06:11
IBM seeks to transform cross-border payments with Blockchain World Wire
05:08
Sri Lanka-based Hatton National Bank partners with Infosys Finacle to pilot blockchain-based trade finance network
04:20
Blockchain information platform CoinNess closes Series A funding
03:44
Samsung SDS unveils ‘Deliver’ – a platform connecting different blockchain platforms
Mar 18, 2019 (Monday)
11:26
German crypto startup Donut secures $1.8M in seed round
10:46
Italian asset management firm AcomeA trials blockchain technology for distribution of funds
09:44
American Bar Association publishes white paper on cryptocurrencies and digitized assets
09:05
XRP, Ether, TRON and others among 58 cryptocurrencies included in ICE’s data feed
07:09
South Korean government seeks 30 people for Blockchain National Participation Evaluation Team
06:19
Former Mozilla executive joins Stellar Development Foundation as Executive Director and CEO
05:57
Blockchain Life 2019 comes to Singapore for its third international edition
05:12
Australian government to develop national blockchain strategy
04:14
U.S. SEC to host DLT and digital asset-focused public forum in May
03:48
Canadian regulators seek to introduce regulatory framework for crypto-asset trading platforms
Mar 15, 2019 (Friday)
11:26
Crypto investment firm Paradigm leads Tendermint’s $9M Series A round
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft