One of the leaders of the Hong Kong Securities and Futures Commission proposes to tighten the regulation of cryptocurrency trading in the region to combat fraud.
Liang Fengyi, Deputy CEO of the Securities and Futures Commission (SFC) of Hong Kong, said the regulator should expand the scope of cryptocurrency oversight in the region, according to an ETNet publication. In particular, it is necessary to tighten control over the unlicensed trade in cryptoassets.
She explained that since crypto assets do not have the status of a security or a means of payment, they do not fall under the jurisdiction of the SFC. As a result, many investors who have invested in crypto assets have suffered significant losses due to the actions of scammers.
Cryptocurrency trading is allowed in Hong Kong, although transactions are under scrutiny from the authorities. In May, Hong Kong regulators announced their intention to ban cryptocurrency exchanges from operating in the region without a license, as well as providing services to non-professional investors.
Several exchanges have either stopped or restricted trading in Hong Kong over the past few months. In June, Hong Kong-based brokerage Futu announced that it would stop trading cryptocurrency futures due to regulatory concerns. In August, the Binance exchange closed access to derivatives trading for Hong Kong residents.
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