Crypto Buying and selling Ban Gained’t Work, Says Hong Kong’s High Monetary Regulator – Bitcoinist.com

0
69
Crypto Trading Ban Won't Work, Says Hong Kong's Top Financial Regulator - Bitcoinist.com

Carlson Tong Ka-shing believes Hong Kong wants a extra strong regulatory framework for cryptocurrency buying and selling. The soon-to-be former head of the Hong Kong Securities and Futures Fee (SFC) has referred to as for higher emphasis on investor safety within the unstable digital foreign money buying and selling enviornment.


Blanket Cryptocurrency Buying and selling Ban isn’t the Proper Method

Chatting with South China Morning Publish, Tong declared that it will be futile to challenge a blanket ban on cryptocurrency buying and selling given the worldwide nature of the enterprise. Commenting on the difficulty, the outgoing SFC chairperson stated:

We don’t assume imposing a complete ban on these platforms is essentially the fitting method, and it’ll not work in right now’s web world when buying and selling can cross nationwide boundaries. Even when we had been to ban them, transactions can nonetheless be simply performed by way of platforms in abroad markets.

Tong’s sentiments are at odds with the established order in mainland China the place the nation has elected to crack down massively on cryptocurrency buying and selling together with ICOs. For Tong, a extra nuanced however strong regulatory framework would serve all events finest.

Tong is because of hand over as head of the SFC to Tim Lui Tim-leung on Friday (October 19, 2018). Earlier within the 12 months, a report by Hong Kong’s Monetary Companies and Treasury Bureau (FSTB) issued a report that stated cryptocurrencies weren’t a viable possibility for organized crime.

For Tong, an efficient regulatory atmosphere requires an extension of the SFC’s mandate to cowl the rising digital asset class. In response to him, the regulatory watchdog’s purview solely covers securities. This limitation isn’t distinctive to Hong Kong alone as different jurisdictions face related problems with making use of securities regulation to observe and management digital asset buying and selling.

Cryptocurrency Firms in Hong Kong Welcome Regulatory Scrutiny

Regardless of the SFC’s technical limitations, Tong believes it’s important that Hong Kong works on a formalized regulatory framework for the cryptocurrency market. Talking additional, Tong famous:

Now we have to rigorously think about the regulatory method for these platforms as a result of they’re new know-how and should not qualify as securities. We have to see if and the way these platforms might be regulated to a typical that’s corresponding to that of a licensed buying and selling venue, whereas on the similar time making certain buyers curiosity are being protected.

Whereas Tong continues to sound the decision for extra laws, operators in Hong Kong consider such a transfer could be helpful to the legitimacy of their enterprises offered the legal guidelines don’t hamper progress and improvement.

Angelina Kwan, COO of Bitmex, whose firm just lately moved into Hong Kong’s costliest workplace constructing, referred to as for the proposed laws to maintain tempo with the present market panorama.