The Annual Report of the Hong Kong Securities and Futures Commission (SFC) which mentions cryptocurrencies and ICOs, taken initiatives and monitoring tendencies has been released on the website of the regulator.
These kind of reports are useful to see the perspective of the regulators and their reviews of the ever-changing market. SFC highlights that protecting investors are their primary aim.
From this perspective, the report mentions that there are substantial cryptocurrency and ICO interest by investors to raise funds in Hong Kong. SFC recalls its interference by issuing two statements to warn investors against potential risks.
Regulator's report indicates that in the future, the SFC will not loosen its grip on the crypto market.
“We will remain vigilant in policing the market and monitor the latest developments.,” - the report says.
In order to create a framework for Fintech, the SFC organized publishing of educational material with Investor Education Centre as well as taking an active role in creating awareness through public educational campaigns for risks related to cryptocurrencies and Initial Coin Offerings.
The report underlines the importance of its coordinated efforts at the ICO Consultation Network with the International Organization of Securities Commissions (IOSCO), an entity which develops, implements, and promotes adherence to internationally-recognized standards for securities regulation.
As for the definitions, SFC marks Cryptocurrency as “A virtual currency which uses cryptography for security,” and Initial coin offering - “a fundraising mechanism whereby digital tokens or coins are offered to investors to fund a blockchain related project.”
By Nadya Astam