• Sat, Jan 19, 2019 05:56 AM
  • All times are UTC
  • Edition:
    International
Link copied

Hong Kong SFC seeks to regulate crypto funds and trading platforms

Photo: SCMP

Nov 02, 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) $3,666.62 (0.00%)
  • XRP (XRP) $0.327100 (-0.35%)
  • Ethereum (ETH) $121.76 (-0.98%)
  • Bitcoin Cash (BCH) $128.13 (-1.39%)
  • EOS (EOS) $2.46 (-1.25%)
  • Bitcoin (BTC) $3,666.62 (0.00%)
Jan 18, 2019 (Friday)
11:26
Former Governor of Banque De France joins board of blockchain startup SETL
10:26
SAP launches blockchain solution to track pharmaceutical drugs
07:22
Crypto exchange Coinbase acquires Blockspring
06:37
ConsenSys co-founder Joseph Lubin joins crypto futures platform ErisX’s board
05:22
SEAT joins Spanish blockchain consortium Alastria
04:20
LG CNS joins Enterprise Ethereum Alliance
03:46
Grayscale launches investment trust for Stellar Lumens
Jan 17, 2019 (Thursday)
12:04
Wyoming lawmakers introduce bill to allow issuance of tokenized stock certificates
10:57
NGA Human Resources seeks to bring blockchain technology to HR & payroll processes
10:07
WWF unveils blockchain-based food provenance platform ‘OpenSC’
08:53
ABCC becomes first crypto exchange to add support for TRON’s TRC-10 tokens
07:16
South Korea’s Financial Services Commission to launch fintech sandbox in April
06:38
BitGo simplifies crypto trading for institutional clients via Genesis partnership
05:08
UPS’ venture arm invests in blockchain-based e-commerce startup Inxeption
04:08
Crypto exchange Binance enters European markets with new Jersey-based exchange
03:39
Blockchain firm R3 announces Corda Network and new governing foundation
Jan 16, 2019 (Wednesday)
11:52
Oil majors Chevron and Total join blockchain platform for energy commodity trading ‘Vakt’
10:45
Gibraltar Blockchain Exchange adds support for EOS on GBX-DAX
10:21
Blockchain startup Bitfury launches music division ‘Bitfury Surround’
09:34
Dubai telecom company du to develop blockchain solution for patient safety
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft