The Securities and Futures Commission of Hong Kong (SFC) has published rules for cryptocurrency funds. The regulator also said that it will probably control trading platforms, Bloomberg reportes.
According to the new requirements, fund managers, whose portfolio contains more than 10% of assets in a cryptocurrency, must obtain a license from the SFC.
It is noted that companies are entitled to apply for a license if they successfully pass the test in the sandbox.
The market for virtual assets is still very young and trading rules may not be transparent and fair. Outages are not uncommon as is market manipulation and abuse. And there are also, I am afraid, outright scandals and frauds.
In addition, the new rules prohibit industry participants from providing customers with any financial incentives or offering them to trade in cryptocurrency futures or derivatives.
Realistically there are two possible ways forward -- regulate or ban -- and it’s a smart move that Hong Kong has chosen to regulate.
Hong Kong-based partner, King & Wood Mallesons
There's no information on any mining regulation updates by SFC. It became known in October that the Commision is preparing rules for regulating cryptocurrency business in the country.