On November 1, the Hong Kong Securities and Futures Commission (SFC) announced that virtual assets will now see a new regulatory approach. SFC defines defined virtual assets as “digital representations of value”. Examples include “crypto currencies,” “crypto assets,” and “digital tokens.” crypto coins like bitcoin are now being regulated by many countries. This is a positive development, because a regulated sector is what big investors want.
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crypto coins like bitcoin are now being regulated by many countries
In addition, the regulatory authority has taken this move by the SFC to protect the interests of those who prefer to invest in this asset class.
it says I. The company will also implement licensing and other terms and conditions for companies dealing with digital assets and portfolio management. Ashley Alder, SFC general manager, said::
The measures described today allow us to somehow regulate the management or distribution of virtual asset funds. Thus, investors ‘ interests will be protected at the fund management level, distribution level or both.
In addition, Ashley Alder explained how to create a safe environment for investors and achieve effective results for those who participate in the sector. Ashley Alder said on the subject::
We hope to encourage responsible use of new technologies and also provide investors with more options and better results.
Hong Kong now adopts a new regulatory approach to virtual assets
The new framework was also created to investigate whether the nature of crypto currencies and other virtual assets is appropriate for further regulation. Platforms related to the trade of virtual assets will also be within the scope of this research. Legal Licensing and regulatory process will begin after the SFC decides to make these platforms suitable for the purpose. When the research is complete, the institution says it will license these platforms and keep them under close supervision.
However, the announcement concluded that any license or regulatory framework could not secure 100 percent of investor funds and could not be placed under a full protection umbrella. SFC also agrees that crypto will observe developments related to the monetary sector.