The Securities and Futures Commission (SFC) of Hong Kong introduced it is going to replace its insurance policies on digital forex gross sales and necessities “in light of the latest market developments and enquiries from the industry.”
In an Oct. 20 discover, the SFC said that underneath the up to date pointers, sure digital forex merchandise will solely be accessible to skilled traders. In addition, intermediaries within the crypto area “should assess whether clients have knowledge of investing in virtual assets” previous to dealing with any transactions.
“Although virtual assets are becoming more popular in some parts of the world, the global regulatory landscape remains uneven,” stated the SFC. “The risks associated with investing in virtual assets identified by the SFC back in 2018 continue to apply.”
The up to date necessities think about digital property “complex products” underneath the SFC and topic to the identical pointers as related monetary merchandise. The fee particularly mentions crypto exchange-traded funds and merchandise issued outdoors Hong Kong as examples of advanced merchandise.
Related: Less than 50% of Hong Kong retail crypto investors aware of relevant regulations: Survey
Many crypto customers in Hong Kong are nonetheless reeling from the scandal surrounding the JPEX crypto change. In September, the SFC introduced that it had obtained greater than 1,000 complaints associated to JPEX, with users claiming losses totaling thousands and thousands of {dollars}. Local police later arrested six JPEX staff for working an unlicensed crypto change.
It’s unclear if SFC’s up to date insurance policies are the direct results of the occasions surrounding JPEX, however the regulator stated in September that it will increase its efforts to maintain crypto traders knowledgeable of dangers. In October, the Hong Kong Police Force and SFC formed a working group aimed toward monitoring and investigating potential unlawful actions involving digital property.
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