The Commission on securities and futures of Hong Kong (SFC) released rules for the cryptocurrency funds. The regulator also said that it may be to control the trade platform, writes Bloomberg.
Under the new requirements, Fund managers, whose portfolio more than 10% of the assets are in bitcoin, must obtain a license from the SFC.
The platform, which serve only professional investors can join the experimental “sandbox”. It companies will be able to conduct experiments in the field of combating money laundering on their sites to prove to the regulator’s competence in this matter.
It is noted that the company has the right to apply for a licence if successful will be tested in the sandbox.
“The market of digital assets is still very young, and trading rules are not always transparent and fair. Manipulation and abuse are common in the market. There are also cases of outright fraud”, — explained the need for regulation of the head of the SFC Ashley alder.
In addition, the new rules prohibit members of the industry to provide customers with any financial incentives or to offer them trade cryptocurrency futures or derivatives.
“Realistically, there are two ways: regulation or prohibition. Well that Hong Kong chose regulation”, — said the partner of the law firm King & Wood Mallesons Ursula McCormack.
Recall that SFC is preparing rules for the regulation of the cryptocurrency business in the country, it became known in October.