Hong Kong to Present Crypto Regulation Rules

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
01 November 2018   226

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.

Ashley Alder

Chief, SFC 

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.

Urszula McCormack

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.

Bitmain to Deny Jihan Wu is Out

Yesterday news that mister Wu left the post of chairman of the board of directors appeared
15 November 2018   85

Bitmain Bitcoin has denied rumors that its head Jihan Wu left the post of chairman of the board of directors. This is reported by CCN.

News that Jihan Wu and three other functionaries withdrew from the board of directors of the company appeared the day before. According to one version, Wu entered into an unspoken confrontation with Bitmain co-founder Micree Zhang, since he is focused on developing products in the field of AI and chip production.

It was also stated in reports of local publications, Wu moved to the position of Bitmain supervisor and lost his right to vote in the decision-making process of the board of directors, in connection with which he will no longer be able to influence the management of the company.

In a letter to CCN, Bitmain marketing manager Nishant Sharma confirmed that the board of directors of the company had undergone personnel changes, but the information that Jihan Wu had left the post of chairman called fake. He also denied the departure of other members of the board.

As is standard listing practice, Bitmain is restructuring its board and group structure, to ensure it meets regulatory requirements on its road to IPO. This is to simplify the board structure to facilitate its management. There have been no board departures and co-founder Jihan Wu will continue to lead the company as co-chair, together with co-chief executive officer, Micree Zhan.

Nishant Sharma

Marketing maneger, Bitmain

Bitmain filed an official application for an IPO on the Hong Kong Stock Exchange in September.