Hong Kong regulators were criticized for fuzzy position on cryptocurrencies

Hong Kong regulators were criticized for fuzzy position on cryptocurrencies

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Hong Kong regulatory agencies say that cryptocurrencies should be regulated as virtual “products”, and remind local banks of the risks of money laundering and terrorist financing using new payment instruments. Recently, the Securities and Futures Commission of Hong Kong also restricted the activities of the ICO, suggesting that they may fall under the requirements of “collective investment schemes”.

Nevertheless, representatives of the local community were not satisfied with the measures that the authorities are taking to regulate the cryptocurrency. This writes 8btc with reference to the publication “Orientaldaily”. According to its  information, participants of the technological community believe that regulators should more clearly indicate their attitude to cryptocurrencies.

Honorary president of the Hong Kong Federation of Information Technology Francis Fong criticized the authorities for their vague position on cryptocurrencies. On the one hand, regulators warn the public about the high risks of investing in such instruments, on the other hand they refuse to clearly identify their vision of the problem, which leads investors into confusion.

Fong believes that financial regulators need to take effective measures to streamline trade in cryptocurrencies and thus protect ordinary investors. In his opinion, this is possible only in the case of cooperation of various departments at several levels.

He was supported by a number of fund managers who drew attention to the fact that after the ban on cryptocurrency trading on the main territory of China, most of the transactions flowed into Hong Kong and Singapore. Although the Hong Kong licensing authorities are interested in working with the cryptocurrency business, they prefer not to contact it until they receive an official “no-objection notice” from the local Securities and Futures Commission.

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