Hong Kong unveiled a new set of regulations aimed at governing the local cryptocurrency trading and funding market in a move that seeks to improve investor protection and the city's status as a premier financial hub.
As reported by the South China Morning Post on Nov. 1, Hong Kong's Securities and Futures Commission is targeting digital currencies that have mushroomed in the city due to its liberal business policies and tax legislation.
As part of the new rules, both virtual currency exchanges and fund fall under the purview of the Hong Kong government, after years of running as an unregistered investment house, but as legal businesses otherwise.
"It will boost investor protection and hence attract more mainlanders to trade cryptocurrency assets in Hong Kong. This will help Hong Kong to be among the top cryptocurrency trading centres worldwide because proper regulation is very important for attracting the big players."
As per Hong Kong law, professional investors are those with HK$8 million in assets and two years of investing experience.
The city's authorities further believe professional investors, like brokers, platform operators, and fund managers, must guide clients towards responsible investment practices.
Any fund investing devoting more than 10 percent of their total assets under management to cryptocurrencies must be registered with the government.
Authorities believe cryptocurrency prices rose last year after immense speculation from both institutional and retail investors.
Unlike Mainland China, which imposed a blanket ban on digital assets in 2017, Hong Kong has taken a lenient view of the cryptocurrency market.
Authorities are setting up a "Sandbox" for cryptocurrency platforms to operate legally until legislation is introduced.
Hong Kong Unveils Regulatory "Sandbox" for Cryptocurrency Trading Platforms and Exchanges
gepubliceerd op Nov 3, 2018
by Cryptoslate | gepubliceerd op Coinage
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