THELOGICALINDIAN - At the alpha of this ages James Lau Hong Kongs Secretary for Financial Services and Treasury abreast the Legislative Council that the acquirement of mining accessories avalanche beneath the Trade Descriptions Ordinance This move places restrictions on who can abundance cryptocurrencies like bitcoin But does it additionally arresting a change in attitude appear crypto by the Hong Kong authorities
Hong Kong is a centermost for fintech addition and a cogent bazaar aural the blockchain economy. As a Special Administrative Region, it allowances from altered aldermanic rules than Mainland China – which shows in their advanced access to cryptocurrency. At present, there are no approved instruments to adapt cryptocurrencies directly. However, Hong Kong legislators are alive appear alteration this.
As cryptocurrencies accept developed in popularity, so has authoritative affair over broker protection. In November 2018, the Securities and Futures Commission (SFC) appear proposals for a new authoritative framework, which focused on exchanges. But added specifically, analogue a avenue to the licensing of crypto exchanges.
The SFC is abutting the amount in basic terms. Ashley Alder, CEO of the SFC, said:
“Those exchanges that appetite to be adapted by us will be set afar from those that don’t. This is about an opt-in access for exchanges and belvedere operators, and they will aboriginal analyze the conceptual framework with us in a austere head environment.”
Under this scheme, crypto exchanges are appropriate to accord alone with institutional investors. Which the SFC sees as all-important for attention investors. But as yet, there is no specific calendar for proceedings.
Hong Kong’s #Securities & #Futures Commission (#SFC修行) will adduce a authoritative administration accepted as a "sandbox" for #crypto exchanges in the Asian banking hub#CryptoNews #Regulation #FinTechhttps://t.co/CTZ6mqCb8a
— SharkCIA News (@SharkCIANews) November 4, 2018
While this move is apocalyptic of a crumbling crypto market. And accepting of the growing accepting of cryptocurrency as a accepted asset class. Some accept the “sandbox” angle is a footfall too far. Leo Weese, Bitcoin Association of Hong Kong President, believes the recommendations are accidental and will advance to an departure of exchanges. Speaking to the South China Morning Post, he said:
“While Hong Kong was a bigger abode back it did not bother such platforms, it was assured this day would come. Exchanges will acceptable advance genitalia of their teams in Hong Kong, but assignment harder to argue the accessible of a new anecdotal that places them alfresco the SAR.”
Recently, the world’s better ambassador of crypto mining equipment, Bitmain accomplished its IPO appliance for the Hong Kong Stock Exchange. Some accept attributed this to low Bitcoin prices, affecting the company’s financials. But afresh again, others see this move as appropriate that Hong Kong is no best the crypto anchorage it already was.
Have you absent your mind??? Bitmain owns added Bitcoins than any added person, aggregation or bureau in the apple and it's endemic by the richest man in crypto. They fabricated a billion dollars in Profit aftermost year alone. Jihan artlessly afflicted his apperception about the Hong Kong exchange. pic.twitter.com/ZTS8QkmS7r
— John McAfee (@officialmcafee) March 29, 2019
Although adjustment is a all-important basic for broker aegis and confidence, are the acrid barter proposals and restrictions on purchasing mining accessories too much?
Hong Kong prides itself on actuality the freest abridgement in the world. The Index of Economic Freedom examines factors accompanying to taxation, government intervention, and artlessness to all-around barter and investment. It denticulate Hong Kong first, advanced of Singapore in additional place.
That actuality so, one charge admiration why cryptocurrencies are not afforded the aforementioned leeway.
