Hong Kong Authorities Don’t Like Security-Oriented Coins

Hong Kong Authorities Don’t Like Security-Oriented Coins

Hong Kong is working on its plans to impose regulations on cryptocurrency exchanges that involve in initial coin offerings. Yesterday the Securities and Futures Commission released a note stating that seven exchanges have been informed that some of the tokens they offer can be considered securities.

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Hong Kong is working on its plans to impose regulations on cryptocurrency exchanges that involve in initial coin offerings. Yesterday the Securities and Futures Commission released a note stating that seven exchanges have been informed that some of the tokens they offer can be considered securities.

So far, not many details have been disclosed including the exchanges and the tokens that are under discussion. The SFC implies that all of the seven markets are either based in Hong Kong or connected to it. The commission has launched a tremendous campaign informing potential investors about the risks that cryptocurrency trade hides. And the recent move is part of that very same campaign.

SFC emphasized actions that are more serious might be taken against the exchanges if they do not respond to the inquiry. Currently, exchanges deny they offer security coins or those who had offered are now taking actions to remove them.

Furthermore, organizers of initial coin offerings have been warned that their tokens are deemed securities and are improperly luring Hong Kong investors to participate in the ICOs. The Hong Kong government tightly works with the Securities and Future Commission on various projects that aim to educate citizens on what crypto coins are, how they work, and what are the potential risks.

The commission notes that future law breaches would not be tolerated. The chief executive officer of SFC, Ashley Adler said that the agency is strictly monitoring exchanges and traders and would not hesitate to step in if necessary. However, the authorities do not want to shut down the whole market and in fact, crypto professionals are cooperating with the agency when it comes to potentially dangerous or malicious fundraising activities on the market.

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