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Hong Kong is one of the countries that have embraced cryptocurrencies and blockchain technology. However, the country's Securities and Futures Commission recently put into place regulations
Hong Kong Securities and Futures Commission Enhance Cryptocurrency Regulations
As reported by several news outlets, Hong Kong Securities and Futures Commission has moved with speed to introduce new regulations that will make it difficult to take advantage of unsuspecting clients. Notably, mainland China has less stringent cryptocurrencies rules, but all commercial activities related to this new form of currency are entirely banned.
Due to this regulation, Hong Kong has become a preferred hub for companies offering crypto services as well as initial coin offerings. The increase in cases of money laundering and fraud has triggered the regulator.
The new SFC guidelines require a 10% of the assets to be managed on behalf of clients in the form of digital currencies such as Bitcoin and Ethereum. The agencies will also be allowed to sell cryptocurrencies to investors who are conversant with the industry. This means that they will not be able to render their services to novice clients.
The commission is also set to introduce a voluntary scheme where it will be able to test virtual currency services and products on a temporary basis. The regulatory sandbox will help you make a decision.
The proposed cryptocurrency rules and regulations will be introduced into the industry in phases. Hong Kong Securities and Exchange Commission. One of the regulations is that of the tokens must have existed for at least one year before
SFC has made drastic decisions to reduce the risk associated with cryptocurrencies. In February 2018, the commission sent several letters to the cryptocurrency exchanges operating in the region. The investors claimed that they were not able to withdraw their digital assets from their accounts. Some of the exchanges were also accused of mismanaging their clients' digital assets as well as manipulating the market in their favor.
In Black, the commission directed by Black Cell Technology has been providing an extra mile to charge for the company. Hong Kong is not the only economy that is keen on regulating the ballooning cryptocurrency industry. More than 20 developed countries are in the process of introducing similar regulations.
Conclusion
The cost of creating and implementing cryptocurrency will be high but will ensure that investors get value for money. The rules will also improve economies by making it possible for not only investors but also the government to leverage blockchain technology.
