The Securities and Futures Commission (“SFC”) has taken another major step towards establishing a regulatory framework for virtual asset trading platforms, and is now inviting licensing applications from platform operators who are willing and able to comply with new licensing criteria and continuing compliance requirements outlined in the SFC’s recently published Position Paper – Regulation of virtual asset trading platforms (“Position Paper”). Licensing applications are open from 6 November 2019. Background In November 2018, the…
In a speech on new technologies on Friday, Hong Kong Securities and Futures Commission (SFC) deputy chief Julia Leung reiterated previous concerns of risks associated with ICOs. She acknowledged that innovative technologies such as blockchain have the potential to improve efficiency and financial inclusion, but warned “that does not entitle anyone to conduct fundraising from the public in violation of securities law.” More frankly, she noted that ICOs: [A]re dubious, if not downright frauds. The…
The Hong Kong Securities and Futures Commission (SFC) issued a statement today repeating an earlier alert to investors to the potential risks of dealing with cryptocurrency exchanges and investing in initial coin offerings. The SFC’s statement echoed similar concerns recently voiced by the U.S. SEC. That is, the SFC sent letters to seven cryptocurrency exchanges in Hong Kong or with connections to Hong Kong warning them that they should not trade cryptocurrencies which are “securities”…