Hong Kong’s financial regulator, the Securities and Futures Commission (SFC), says they are keeping a close watch on cryptocurrencies and initial coin offerings (ICOs), as stated in the 2017–2018 annual report titled “Regulation for Quality Markets,” released on June 27.

The report summarizes details about the regulator’s efforts in the cryptocurrency sector. The report states:

“New technologies provide convenience for investors but come with risks. We keep a close watch on cryptocurrencies and initial coin offerings, intervening where appropriate. We also launched the SFC regulatory sandbox for qualified firms to conduct regulated activities utilizing financial technologies.”

They issued a public warning to investors related to risks in the highly volatile markets. The first circular was released in September 2017 regarding the status of ICOs in the city. The local regulator then declared that some ICOs could be considered securities. In February this year, SFC CEO Ashley Alder said:

“We will continue to police the market and enforce when necessary. But we are also urging market professionals to do proper gatekeeping to prevent frauds or dubious fundraising and to assist us in ensuring compliance with the law.”

The report states:

“In light of significant investor interest in cryptocurrencies and the use of initial coin offerings (ICOs) to raise funds in Hong Kong, we took regulatory action against a number of cryptocurrency exchanges and ICO issuers and issued two statements alerting investors to their potential risks. We will remain vigilant in policing the market and monitor the latest developments.”

The agency, working with the Investor Education Center, introduced new educational materials on cryptocurrencies and took part in campaigns on the risks of dealing in these coins. In March this year, the ICO of Black Cell Technology was halted by the regulator as it called the offering an “unregistered security.” Later, the Hong Kong government denied that virtual currencies are linked with terrorism financing or money laundering.

For now, it seems clear that Hong Kong aims to regulate the market and become a hub for financial innovation, as it has emphasized several times before.

Hong Kong SFC Says It’s Keeping a Close Watch on ICOs was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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