The Hong Kong Securities and Futures Commission (SFC) reminded investors that digital asset-based products with high interest rates on deposits are not legally protected in the country.
According to the regulator, such offers may be presented as deposits or savings products, but in fact have nothing to do with bank deposits. The SFC has warned that many platforms offering similar investment products are not subject to any transparency and financial soundness rules.
Therefore, if such an investment platform goes out of business, goes out of business, is hacked or scammed, investors risk losing all of their investments held on the exchange. The SFC has warned that some virtual asset investment products could be classified as unlicensed investment funds and advertising to the public in Hong Kong could result in a HK$500,000 ($64,293) fine and three years in prison.
Recall that recently Hong Kong investment companies CSOP Asset Management, Samsung Asset Management and Mirae Asset Global Investments filed applications to launch futures ETFs with the Hong Kong Securities and Futures Commission.
Source: Bits
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