In the Chinese special administrative zone Hong Kong, the authorities remain skeptical of crypto. The Securities and Futures Commission (SFC) warns investors against the risks of virtual plant models. These include primarily Security Token Offerings (STOs). She announces stricter regulations.
From Polina Khubbeeva
At the 1. June 2019BTC$8.530,00 1.26%part Facebook Twitter LinkedIn xing mail
The top securities regulator in Hong Kong, the Securities and Futures Commission (SFC), published on 28. May an opinion on the regulation of Security Token Offerings (STOs). In this, the SFC points out the risks of a Security Token, which result from the lack of transparency in their licensing.
Security Token apply in Hong Kong as the securities,
According to the laws in the Chinese special economic zone of Hong Kong Security Token are considered to be securities. After that, you are subject to the securities regulations of the Securities and Futures Ordinance (SFO). This was created in 2003 as a sub-authority, the SFC, and regulates the administrative and regulatory permissions from securities and Futures in Hong Kong.
Security Token, which will be distributed in Hong Kong must be registered by the SFO and licensed. The activities shall consequently be considered as the value of paper trading. Security Token as the “complex products” are also subject to additional regulations to protect investors.
SFC warns investors as well as potential risks of the virtual value systems.
The SFC has repeatedly reminded investors that the virtual plant are exposed to forms of greater risks than conventional financial assets. It is the risk of insufficient liquidity or volatility, opaque pricing, Hackings or fraud exist.
STOs as a Fundraising method in the development phase. Investors should therefore be careful when making investment decisions. You can experience sensitive financial losses in trade with a Security Token. Interested investors should understand the potential risks, it is advisable to take a investment gap.
Stricter regulations
Thomas Atkinson, Executive Director, and is responsible for the enforcement of laws at the SFC announced on 30. May compared with The Standard, that the structure of some of the exchanges is outside the guidelines of the SFC. Legal experts are working together with the SFC on new ways to regulate digital securities on crypto-base and to observe.
Also in Hong Kong will STOs becoming more and more popular. With the growing popularity of the Security Token Offerings, the administrative regulation of the crypto-growing plants.
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