Hong Kong was known to be a crypto-friendly land but not anymore. The Securities and Futures Commission (SFC) is going to take new measures against the digital assets which include the cryptocurrencies.
The measures are being taken on account of the “significant risks” these digital assets can put through investors and the new measure would curb the effect of these risks for investors.
SFC also reminded the fund managers in a separate notification that all such companies should be registered with the regulatory authority and strictly comply with the rules and regulations set forth by the authority.
The Chief of the authority Ashley Alder is of the view that the measures are to ensure that the cryptocurrencies are regulated properly. This would protect the investor’s interest by allowing the authority to keep an eye on the management and distribution process.
Alder further expressed that the measures would ensure that investors get the best returns on their investments and the industry flourishes in a healthy environment.
SFC is also looking to get past the fund managers and extend their authority over crypto-exchanges operating in the country. But for now, the authority is only observing the operations to come up with a decisive announcement.
Crypto-experts believe that the authority is only taking its time to take the exchanges under its authority while they register the fund managers.
The delay would allow the authority to deal with the fund managers at the same time it would also allow exchanges to formulate their strategy.