The Securities and Futures Fee (SFC) of Hong Kong introduced it would replace its insurance policies on digital foreign money gross sales and necessities “in mild of the most recent market developments and enquiries from the business.”
In an Oct. 20 discover, the SFC said that underneath the up to date pointers, sure digital foreign money merchandise will solely be accessible to skilled buyers. As well as, intermediaries within the crypto house “ought to assess whether or not purchasers have information of investing in digital belongings” previous to dealing with any transactions.
“Though digital belongings are gaining popularity in some elements of the world, the worldwide regulatory panorama stays uneven,” mentioned the SFC. “The dangers related to investing in digital belongings recognized by the SFC again in 2018 proceed to use.”
The up to date necessities think about digital belongings “complicated merchandise” underneath the SFC and topic to the identical pointers as comparable monetary merchandise. The fee particularly mentions crypto exchange-traded funds and merchandise issued outdoors Hong Kong as examples of complicated merchandise.
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Many crypto customers in Hong Kong are nonetheless reeling from the scandal surrounding the JPEX crypto trade. In September, the SFC introduced that it had obtained greater than 1,000 complaints associated to JPEX, with users claiming losses totaling hundreds of thousands of {dollars}. Native police later arrested six JPEX staff for working an unlicensed crypto trade.
It’s unclear if SFC’s up to date insurance policies are the direct results of the occasions surrounding JPEX, however the regulator mentioned in September that it might increase its efforts to maintain crypto buyers knowledgeable of dangers. In October, the Hong Kong Police Pressure and SFC formed a working group aimed toward monitoring and investigating potential unlawful actions involving digital belongings.
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