Hong Kong’s SFC Warns Against Crypto, Russia Clarifies Exchange Regulation and Market Remains Stable
Julia Leung, deputy head of the Hong Kong Securities and Futures Commission (SFC), warned against ICOs and crypto trading in a speech at the Hong Kong Investment Funds Association Luncheon on April 13. Leung discussed the uncertainties of cryptoasset trading and how they may pose a risk to investors:
"The high volatility of crypto assets and serious hacking incidents in Japan and Korea in the past few months resulting in hundreds of millions in US dollar losses should serve as a sharp reminder of the risks associated with such trading."
Leung also cautioned that many ICOs can take advantage of blockchain technology to mislead investors without legal consequence:
"Further complicating matters, many of these fundraisings are dubious, if not downright frauds. The issuers escape the scrutiny of the police or securities regulators because of their cross- border nature and the way the crypto assets are structured to fall outside any regulator's perimeter."
According to Russian cryptocurrency journal ForkLog, the Russian government has formulated a response to a draft bill "On Digital Financial Assets", wherein they detail exchange between fiat and cryptocurrencies. The piece reports that exchanges equalling or exceeding 600 thousand rubles, or roughly $9600 USD, will be subject to regulation:
"... the bill "On Digital Financial Assets," which states that "the exchange of crypto-currencies for monetary units in the amount of 600 thousand rubles or more must be subject to mandatory exchange control.""
The crypto market appears to be holding on to its modest recovery from late last week. Bitcoin (BTC) is staying at around $8000 USD at press time, after reaching a peak of about $8400 USD earlier today. Some speculatethat the market will rally after U.S. tax day tomorrow, as investors have been selling off crypto to pay their taxes and will once again be able to buy afterwards.
Get the Crypto Corner News by email Get Crypto Corner News