The chairman of the Hong Kong SFC Carlson Tong Ka-Shing is considering new crypto exchange regulations to tighten the protection for investors and to keep a lid on the crypto industry in the city.
The Hong Kong Securities and Futures Commission (SFC) is continually searching for new and effective ways to curb rogue crypto operators and to improve ongoing crypto exchange regulations. The SFC had already issued warnings over the past few months to exchanges to get their affairs in order and abide by SFC rules while warning investors to be careful with the choices they make.
Harsh but Fair Crypto Exchange Regulations
As more financial regulatory bodies and watchdogs start to oversee the crypto-asset industry, Tong Ka-Shing thinks it is important to safeguard investors while ensuring that the local industry remains robust and most importantly, in line with the law.
Talking to the South China Morning Post, Tong Ka-Shing outlined some of the wishes of the SFC by saying:
We do not think imposing a total ban on these platforms is necessarily the right approach, and it will not work in today’s internet world when trading can cross national boundaries. Even if we were to ban them, transactions can still be easily conducted via platforms in overseas markets.
It’s a smart move to recognize the international nature of the crypto world and that banning crypto-asset trading will not eradicate the problem, but will make it more complex for local and nationwide authorities to regulate.
“We Are Watching you!”
Attacking crypto exchange trading platforms seems like the logical place for the SFC to start. These exchanges are similar to traditional stock exchanges in many ways with centralized platforms generally operated by one group of people or a single organization. There are a handful of exchanges operating out of Hong Kong but very few are in line with current crypto exchange regulations.
Tong Ka-Shing will be handing over the reins to the SFC’s soon-to-be new chairman Tim Lui Tim-Lueng, which is expected to take place later this week. However, before leaving the post, Tong Ka-Shing warned unregulated crypto-asset exchange platforms in Hong Kong that:
We are watching you!
Although Tong Ka-Shing also pointed out that the SFC is restricted by technically only being able to regulate securities, they are keeping a keen eye on the industry. As the trading of crypto-assets and Bitcoin in Hong Kong goes through the roof, Tong Ka-Shing also mentioned that the SFC is biting at the bit to impose tighter crypto exchange regulations in the very near future.