Hong Kong Watchdog to Issue Exchange Licensing Rules

The new rules, issued by the Hong Kong Securities and Futures Commission are based on the standards that are applied to licensed brokers
06 November 2019   177

The Hong Kong Securities and Futures Commission (SFC) has published rules governing "trading platforms for virtual assets." The regulator’s license will be able to get platforms where at least one security token is traded.

The new rules are based on the standards that SFC applies to licensed brokers. They cover asset retention, compliance with KYC / AML rules and the prevention of market manipulation.

The rules also include additional requirements to address specific risks associated with cryptocurrencies. SFC requires licensed platforms to offer services exclusively to professional investors and adhere to strict criteria for listing digital assets. Licensees will be placed in a regulated sandboxed SFC (sandbox) for the supervision period.

The regulator emphasized that he does not have the authority to license and control platforms on which exclusively cryptocurrencies without the properties of securities are traded.

SFC also warned investors about the risks associated with the purchase of futures for virtual assets. According to the regulator, trading in such derivatives is largely unregulated and subject to extreme volatility.

LocalEthereum to be LocalCryptos Now

Exchange's team believes they have advantages over LocalBitcoins, which "looks the same today as it did in 2012"
19 November 2019   129

LocalEthereum's P2P platform changed its name to LocalCryptos to support more cryptocurrencies, starting with bitcoin.

The possibility of buying / selling BTC has already been added, in the near future EOS, DASH and Litecoin (LTC), as well as Ethereum-based tokens are indicated.

According to the statement, the platform has more than 100 thousand users around the world.

With rebranding and the addition of bitcoin trading, the site competes with the popular P2P platform LocalBitcoins, and LocalCryptos believes that they have advantages. They include the non-custodian BTC escrow system and end-to-end message encryption.

Platforms like LocalBitcoins are centralized, custodial, and a far cry from private. These platforms are vulnerable to hacks and thefts like a centralized exchange.

LocalCryptos Team

Hackers have stolen several billion dollars from the past, and at least two incidents related to LocalBitcoins traders, the statement said.

LocalCryptos does not store user private keys and declares that it gives them full control over the funds.