Hong Kong’s financial regulator yesterday launched a campaign to make people aware of risks involved in crypto and ICO investments.
The aim is to help the public assess risks before making investments or making transactions, according to Joseph Chan, the undersecretary of the government’s Financial Services and the Treasury Bureau (FSTB). The program was launched by the regulator together with the Investor Education Centre (IEC). However it is a subsidiary of the Securities and Futures Commission (SFC).
The program will be offering through media including TV and social media and city’s metro system. ICO and cryptocurrency-related resources are now already available from the Investor Education Centre (IEC) website Chin Family. It offers a diverse type of resources including general ideas about investing in cryptocurrencies.
It comes in the wake of increased interest in ICOs and cryptocurrencies. This is both in Hong Kong and the world over. However, there is little understanding about some products and cryptocurrency trading in general. Take for instance Bitcoin Futures: the initiative also comes as the Securities and Futures Commission (SFC) warned that tokens issued through ICOs. Thus, it would be regulating as securities depending on the structure of each ICO. Besides, the commission said last month that only licensed firms would offer Bitcoin futures and other financial instruments related to cryptocurrencies.
The notice said that although some unregulated crypto exchanges were offering Bitcoin Futures contracts. Since following their launch by companies in the United States. The license and authorization may be in need from the SFO depending on whether or not the products constitute “futures contracts” or “securities”. It said that in some cases, exchanges could operate outside the jurisdiction, but investors should be aware of the risks.
“Investors should understand the risks of using these services, as in the past some cryptocurrency exchanges have collapsed. Also been hack and client assets are stolen or misappropriated”.
It also comes after increased hacking and scam activity.