Citywire - For Professional Investors

Register to get unlimited access to all of Citywire’s fund manager database. Registration is free and only takes a minute.

Hong Kong takes action against crypto exchanges, issuers

Hong Kong takes action against crypto exchanges, issuers

Hong Kong’s Securities and Futures Commission has taken regulatory action against 14 cryptocurrency exchanges and issuers of initial coin offerings (ICOs) on the back of complaints from investors.

The SFC did not reveal which exchanges and ICO issuers were under scrutiny.

It said investors have complained that they were unable to withdraw fiat currencies or cryptocurrencies from their accounts opened with cryptocurrency exchanges.

Some complainants claimed that cryptocurrency exchanges had misappropriated their assets or manipulated the market causing them significant losses.

As such, it has issued letters to seven cryptocurrency exchanges in Hong Kong or with connections to Hong Kong warning them not to trade digital currencies which are securities as defined in the Securities and Futures Ordinance (SFO) without a licence.

Most of the exchanges took immediate rectification measures, including removing relevant cryptocurrencies from their platforms.

The SFC said it may take further action against cryptocurrency exchanges which disregard the provisions of the SFO and those which are repeat offenders.

The SFC has also written to seven ICO issuers. Most of them confirmed compliance with the SFC's regulatory regime or immediately ceased to offer tokens to Hong Kong investors.

‘We are also urging market professionals to do proper gatekeeping to prevent frauds or dubious fundraising and to assist us in ensuring compliance with the law,’ said CEO Ashley Alder.

'If investors cannot fully understand the risks of cryptocurrencies and ICOs or they are not prepared for a significant loss, they should not invest,' added Julia Leung, executive director of intermediaries.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Events
  • Citywire Asia Bangkok Retreat 2018: day one images

    Citywire Asia Bangkok Retreat 2018: day one images

  • Citywire Asia Bangkok Retreat 2018: day two images

    Citywire Asia Bangkok Retreat 2018: day two images

  • Citywire Asia Taipei Retreat 2017: day one images

    Citywire Asia Taipei Retreat 2017: day one images

  • Citywire Asia Taipei Retreat 2017: day two images

    Citywire Asia Taipei Retreat 2017: day two images

  • Citywire Asia Bangkok Retreat 2017: day one images

    Citywire Asia Bangkok Retreat 2017: day one images

  • Citywire Asia Bangkok Retreat 2017: day two images

    Citywire Asia Bangkok Retreat 2017: day two images

  • Images from Citywire Thailand Forum 2017

    Images from Citywire Thailand Forum 2017

  • Citywire Asia Awards 2017: images from Singapore

    Citywire Asia Awards 2017: images from Singapore

  • Citywire Asia Awards 2017: images from Hong Kong

    Citywire Asia Awards 2017: images from Hong Kong

  • Citywire Asia Retreat in Bangkok: day two images

    Citywire Asia Retreat in Bangkok: day two images

  • Bangkok buzz: day 1 images from our Asia Retreat

    Bangkok buzz: day 1 images from our Asia Retreat

  • Images from Citywire's Thailand Forum

    Images from Citywire's Thailand Forum

  • Pictures from Citywire's Hong Kong forum

    Pictures from Citywire's Hong Kong forum

  • Images from our Citywire Singapore Forum

    Images from our Citywire Singapore Forum