A major financial hub of Asia with a plethora of large financial companies, Hong Kong seeks to balance itself between traditional forms of financial transactions and new-age electronic cryptocurrency transactions. While the Hong Kong government has no plans to introduce legislation to regulate Bitcoins or other cryptocurrencies at present, it continues to monitor their usage locally and overseas.
Cryptocurrencies in Hong Kong got a major boost after Chinese investors moved to Hong Kong when China declared cryptocurrencies to be illegal and started cracking down on cryptocurrency exchanges. Nevertheless, it remains to be seen whether the same policies would be imposed in Hong Kong in the future due to pressure from the Chinese mainland.
of Cryptocurrency in Hong Kong
Even though cryptocurrencies saw a meteoric rise in 2017, Hong Kong has thus far refused to comment on the legality of cryptocurrencies as a whole in the territory. The central bank of Hong Kong and the government have cautioned people to carefully consider their options before investing in digital currencies though.
of ICOs in Hong Kong
The Securities and Futures Commission (SFC) of Hong Kong published a statement in September of 2017 regarding ICOs. According to the commission, some ICOs issuing digital tokens that have similarities to Securities would fall under the purview of Hong Kong’s securities law and therefore under SFC jurisdiction.
The SFC has further stated that any activity related to ICO tokens may constitute a regulated activity and as such would need to register themselves with the SFC in order to operate in Hong Kong. The regulator also warned dealers and investors of the risks associated with tokens issued in these ICOs.
Markets in Hong Kong
Since Hong Kong has tremendous interest in cryptocurrencies, companies in China have started to move there. following the Chinese government’s crackdown on digital currencies. The majority of Chinese cryptocurrencies now pass through Hong Kong.
It remains to be seen whether Hong Kong could follow the path of Beijing in implementing some of the worst forms of cryptocurrency regulation and thereby lose its chance to be the financial hub of Asia, or remain neutral and continue to allow cryptocurrency transactions within its territory.
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