SFC sends warnings to crypto-exchange exchanges
Apparently, the Hong Kong organization regulating securities strengthens the regulation of the crypto-exchange exchanges associated with Initial coin offering (ICO).
In a statement, the Securities and Futures Commission in Hong Kong (SFC) said that it sent warning letters to seven exchanges, which say that certain tokens traded on their platforms can be identified as securities.
Despite the fact that the stock exchanges themselves were not named, the SFC indicated that they were either based in Hong Kong or related to it.
According to the note, this step is part of wider SFC measures to warn investors about the risks of trading cryptocurrency.
Warnings about the possible risks of the ICO fund-raising model began on September 5 last year.
It is noteworthy that the SFC stated that these measures can lead to further actions …
At the moment, all exchanges responded to the request.
“The majority of crypto-exchange exchanges either confirmed that they did not provide trade services for such crypto-currencies or took immediate corrective measures, including the removal of relevant crypto-currencies from their platforms,” the statement said.
Interestingly, such steps are taken following the SFC partnership with the Hong Kong government, which recently discovered that the two agencies have launched a public campaign to educate citizens about the potential risks, fraud, and hacking associated with crypto-currencies.
Further, the agency reported that it would not allow any violation of the Hong Kong securities laws.
“We will continue to monitor the market and enforce the rules if necessary,” said Ashley Alder, SFC’s Chief Executive Officer. “We also encourage competent organizations to perform proper checks to prevent fraud or questionable fundraising, and help us enforce the law “.