The Securities and Futures Commission (SFC) in Hong Kong is responsible for financial regulations. They are also asking for public opinion on their plan to create rules for cryptocurrency exchanges .SFC wants to know what people think about their proposal for regulating cryptocurrency exchanges in Hong Kong.
The Securities and Futures Commission (SFC) in Hong Kong is the regulatory body responsible for financial rules. SFC is asking if regular people can use licensed cryptocurrency exchanges to trade digital currencies and how to protect them while using these exchanges.
On Feb 20th, the SFC declared a process to ask for opinions about new rules for cryptocurrency trading in Hong Kong. They suggested that the regulatory body license all cryptocurrency trading platforms in Hong Kong.
Firstly, The SFC wants to make new rules for exchange trading in Hong Kong. They are already using practices for licensed securities brokers and automated trading places. But they have made some changes.
Secondly, The SFC in Hong Kong will create a list of cryptocurrency exchanges and service providers who have been licensed. The list will regularly update people on which companies are legally allowed to operate.
As has been our philosophy since 2018, our proposed requirements for virtual asset trading platforms include robust measures to protect investors, following the ‘same business, same risks, same rules’ principle.
Regulating Cryptocurrency In Hong Kong: SFC’s New Rules
There are also many things that these cryptocurrency exchanges and service providers need to do. To follow the new rules, cryptocurrency exchanges, and service providers must protect their customers’ money and security.
Companies that want to keep working and get a license should change their rules and ways of doing things to follow the new rules. Companies that don’t want to obtain a permit will have to stop working in Hong Kong. Additionally, The SFC in Hong Kong will create a list of cryptocurrency exchanges and service providers who have been licensed.
Related Reading | The Truth Behind Bitcoin Development & Approval Process
This article conveys general information, and the opinions expressed should not be considered personal advice for any individual or specific security or investment product.
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