- The Hong Kong Securities and Futures Commission (SFC) recently announced updates to its policies on virtual currency sales and requirements.
- The SFC now requires certain crypto products to be available only to professional investors. Crypto intermediaries must also assess clients’ knowledge before transactions.
- The JPEX crypto exchange scandal led to over 1,000 users reporting millions in losses. This prompted the SFC to vow increased efforts to inform investors of crypto risks.
The Hong Kong Securities and Futures Commission (SFC) recently announced updates to its policies on virtual currency sales and requirements. This comes after recent market developments and inquiries from the industry.
Updated Policies for Complex Crypto Products
The SFC said certain virtual currency products will now only be available to professional investors. In addition, crypto intermediaries should assess clients’ knowledge before handling transactions. The SFC noted virtual assets remain complex products with high risks. The updated requirements align policies for crypto products with similar financial instruments.
Fallout from JPEX Crypto Exchange Scandal
Many crypto users in Hong Kong are still recovering from the JPEX crypto exchange scandal. Over 1,000 users reported losses totaling millions of dollars. This led to the SFC vowing increased efforts to inform investors of crypto risks. It also sparked the creation of a joint working group between the SFC and Hong Kong Police to monitor potential illegal crypto activities.
The SFC’s updated policies aim to better protect retail crypto investors in Hong Kong’s turbulent cryptocurrency landscape. However, risks remain high for those participating in this complex and volatile market. Investors should exercise caution and conduct thorough due diligence before investing in any crypto assets or products.