The Hong Kong Commission on securities and futures (SFC) has published a list of recommendations for businesses that trade cryptocurrencies. According to the head of the Commission, Ashley elder, based on the recommendations will be developed measures to regulate the activities of trading platforms.
In Hong Kong permitted to trade digital assets, however, the law of the crypto currency has not yet been adopted. According to elder, kryptonyte prevalent manipulation of assets, fraud and other illegal machinations. The head of the Commission believes that the market for virtual currencies is still young, however, it should be regulated to protect the rights of consumers.
SFC to require Fund managers to inform the Commission about their plans to invest in cryptocurrencies, regardless of the type of financial instrument, whether securities or futures contracts. Companies that intend to invest in digital assets of more than 10% of the total amount of savings will be able to join “the sandbox investment” established to develop new products and services.
In the near future, SFC will be the Supervisory body over the activities of cryptocurrency exchanges. The Commission stated, marketplace will be equal to the providers of automated trading services, so their work will be regulated in accordance with applicable law.
The course Bitcoin and most altcoins have stabilized, volatility declined markedly. Experts believe that this is a positive sign, in their opinion, the cryptocurrency market is gradually strengthening. The authorities of many States realized that digital assets are not going anywhere, and so take steps towards establishing a legislative framework for the regulation of kryptonyte.