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Hong Kong Regulators Release Plans For Cryptocurrency Exchange Regulations

The security watchdog at Hong Kong announces their plan for cryptocurrency exchange regulations. They also decide to regulate the funds investment in digital assets initially to protect investors.

According to the Securities and Futures Commission, they deem to regulate the cryptocurrency exchanges together with crypto portfolio managers using their “sandbox”. Moreover, by enforcing existing regulations adoption to the risks relating the digital assets.

Looking into present rules, the SFC does not regulate cryptocurrency trading, unless digital assets count under securities or may be futures contracts. The Chief Executive at SFC, Ashley Alder says,

The measures announced today allow us to regulate the management or distribution of virtual asset funds in one way or another so that investors’ interests would be protected either at the fund management level, at the distribution level, or both.

The global regulatory authorities are increasingly looking into cryptocurrencies. This is because the value of the digital assets has been skyrocketing since 2017. The Hong Kong regulatory watchdogs are examining cryptocurrency exchange regulations. They decide to announce similar regulations for the automating trading services.

While observing possible regulations, the SFC can include these cryptocurrency exchanges within their regulatory “sandbox”.  Basically, “sandbox” is a term belonging to the technology industry. This refers to a programme that enables firms to test their products using some temporary regulatory approval.

The SFC mentions that, leveraging new rules, only professional investors owe the permission to invest in virtual asset portfolios. They continue saying that there’s one future issue in cryptocurrency exchange regulations. The adherence lies with anti-money laundering standards and owing to the anonymous identity of digital assets.

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Qadir AK

Qadir Ak - Co-founder of Coinpedia Blog - His interest as crypto Author, Editor, Speaker at cryptocurrency conference has made him known as passionate blogger and startup in Asia.

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