The outgoing Chairman of the Commission on securities and futures of Hong Kong (SFC) Chairman Carlson Tong Cashin ruled out the possibility of ban on bitcoin exchanges, as it previously did the Chinese authorities. This writes the South China Morning Post.
Currently the Hong Kong authorities are preparing for the introduction of rules for the regulation of the cryptocurrency business in the country, and as the head of SFC, the prohibition of exchanges and other trading platforms will not be the right approach.
“We don’t think a complete ban of these platforms is the right approach. In today’s Internet world, when the trading does not know national borders, it does not work” — he said.
Chairman of the SFC pointed out that the normative-legal base to regulate cryptocurrency exchanges is absolutely necessary, adding that such platforms work with new technologies and therefore the rules of the traditional financial market, especially in the context of the offering of the securities, they cannot be applied.
“We need to understand how these platforms can be regulated according to the standards, which can be compared with licensed trading platforms, while simultaneously protecting the interests of investors”, — said Chairman Carlson Tong Kashin.
The publication also notes that working in the Hong Kong stock exchange has already welcomed this approach of the head of the SFC. So, chief operating officer of BitMEX Angelina Kwan said that proper regulation will help shape the new industry. In turn, the CEO of Circle Jeremy Allair said that the company is willing to proactively cooperate with the Hong Kong government in addressing these issues.
Earlier this year, the SFC has warned investors on the risks, which can carry primary supply of coins (ICO), noting that many of them are a direct fraud.