THELOGICALINDIAN - Hong Kongs banking babysitter is attractive to bind broker aegis by acclimation cryptocurrency trading platforms
The Balance and Futures Commission (SFC), however, is bound by its acknowledged authoritative ability of balance only, according to Carlson Tong Ka-shing, the approachable chairman.
Outgoing SFC Chairman Says Ban on Cryptocurrency Trading “Will Not Work in Today’s Internet World”
In his aftermost account afore abrogation the SFC, Ka-shing told the South China Morning Post that a ban on cryptocurrency trading “will not assignment in today’s internet apple back trading can cantankerous civic boundaries. Even if we were to ban them, affairs can still be calmly conducted via platforms in across markets.”
Taking a absolutely altered attitude from Mainland China’s abounding ban on agenda bill trading, the SFC has alone issued warnings of attention to investors.
However, as the bazaar grows aural the retail and institutional trading frames, the regulator faces added burden to put in abode academic rules while actuality bound to balance regulation.
“We accept to anxiously accede the authoritative access for these platforms because they are new technology and may not authorize as securities. They do not fit in the custodian, analysis or appraisal requirements, for instance, commonly accepted beneath the Balance and Futures Ordinance.”
Tong added that the SFC is evaluating the best access to adapt cryptocurrency platforms “to a accepted that is commensurable to that of a accountant trading venue, while at the aforementioned time ensuring investors absorption are actuality protected.”
The SCMP accomplished out to Angelina Kwan, arch operating administrator of the bitcoin Mercantile Exchange (BitMEX), and Jeremy Allaire, architect and arch controlling at U.S.-based Circle, on the proposed regulations.
“We achievement the guidelines or regulations actuality advised will accumulate clip with bazaar developments. The U.S. has alien regulations over cryptocurrency and there are futures articles actuality traded by the CME Group and the CBOT. This shows that a authoritative ascendancy can advice to advance a new industry,” Kwan said.
As for Allaire, he is acquainted that Circle operates in a non-regulated amplitude and vowed to proactively assignment with the Hong Kong authorities on arising licensing or authoritative frameworks.
Circle’s mCEO wants rules in abode to assure the “real risks for investors” and to “ensure the abiding abeyant of the agenda asset industry.”
The SFC’s anniversary address appear in June declared the regulator would monitor the cryptocurrency bazaar and footfall in with penalties back it needs to.
Mainland China, on the added hand, has a abundant harsher approach to agenda bill trading. Alipay afresh concluded all Bitcoin over-the-counter (OTC) trades on its platform, as allotment of the ban appear in 2017.
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