Hong Kong Tries Out New Cryptocurrency Regulations

Maja Mazur
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The Hong Kong Securities and Futures Commission’s CEO is convinced that crypto regulations are necessary. Unlike in South Korea, a total ban of ICO is not an option for Hong Kong.

Legal actions around the world

Cryptocurrency law regulations are becoming more and more indispensable in the modern world. New blockchain technologies happen to develop literally by the minute, so it is essential to keep it all together. The government control allows the cryptocurrency world to grow and spread in a legal and safe way. Unfortunately, some countries have decided to completely cease some of crypto solutions. Hong Kong, on the other hand, has always been a friendly place for crypto maniacs. We sincerely hope it will stay this way.

Necessary changes

South China Morning Post reports that The Hong Kong Securities and Futures Commission (SFC) is about to explore new ways of the cryptocurrency exchange regulation. The taken actions are supposed to protect retail investors. SFC chairman Carlson Tong Ka-shing has eliminated the possibility of banning exchange platforms completely. Tong has stressed that a total prohibition of any cryptocurrency transactions would be a mistake. He has reminded that this kind of trading can easily cross national borders and that people would find another way to do it. But at the same time, he has stated that some legal regulations are absolutely necessary. The current lack of thereof should be considered disturbing.

Work in process

So far the SFC has only been warning the crypto investors to be careful when trading, without introducing any specific regulations. Now the institution is worried that it’s not enough. Currently, they will be working on some solutions that are suitable for the market. According to the South China Morning Post, Hong Kong cryptocurrency exchanges have responded positively to the news.

Recently, a similar news has broken in the EU crypto space as well. It seems like cryptocurrency exchange regulations are needed all around the world.

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