Hong Kong Updates its Crypto Rules
Hong Kong's SFC introduces new crypto rules; only experts can buy certain products. This comes after concerns with the JPEX exchange and growing crypto risks.
Hong Kong's Securities and Futures Commission (SFC) will change its rules on virtual currency. On Oct. 20, they shared new guidelines where only expert investors can access some crypto products. Also, crypto companies must ensure that their clients understand virtual assets before making any deals.
The SFC mentioned that while virtual assets gain popularity, global rules vary a lot in different parts of the world. They reminded the public of the risks in crypto investments which they identified in 2018 noting that these risks are still relevant.
The new rules see virtual assets as "complex products", like other financial items. For example, the SFC points to crypto funds and those products from outside Hong Kong as complex.
Recently, many people in Hong Kong were upset over problems with the JPEX crypto exchange. The SFC got over 1,000 complaints about it, and people claimed that they lost a lot of money. Later, the police arrested six JPEX workers for running an illegal crypto business.
While it's not sure if these new SFC rules come from the JPEX issue, the SFC did promise to help crypto investors understand risks better. In October, the Hong Kong Police and the SFC partnered up to monitor and look into any crimes related to digital assets.
