The Securities and Futures Commission of Hong Kong (SFC) has published rules for cryptocurrency funds. The regulator also said that it will probably control trading platforms, Bloomberg writes.
According to the new requirements, fund managers, whose portfolio contains more than 10% of assets in a cryptocurrency, must obtain a license from the SFC.
Crypto platforms that serve only professional investors can join the experimental sandbox. In it, companies will be able to conduct experiments in the field of countering money laundering at their sites in order to prove to the regulator their competence in this matter.
It is noted that companies are entitled to apply for a license if they successfully pass the test in the sandbox.
“The digital asset market is still very young, and the rules of trading are not always transparent and fair. Manipulations and abuses are frequent occurrences in the market. There are also cases of overt fraud, ”explained the need to regulate the head of the SFC, Ashley Alder.
In addition, the new rules prohibit industry participants from providing customers with any financial incentives or offering them to trade in cryptocurrency futures or derivatives.
“If you look realistic, there are two ways: regulation or prohibition. It’s good that Hong Kong has chosen regulation, ”said Ursula McCormack, a partner at law firm King & Wood Mallesons.
Recall that the SFC is preparing rules for regulating cryptocurrency business in the country, it became known in October.
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