The Hong Kong government is preparing a change in the rules for regulating platforms for trading all kinds of cryptocurrencies. This follows a speech by Clara Chiu, director of the licensing department of the Hong Kong Securities and Exchange Commission.
The proposal, which Clara Chiu was referring to at Hong Kong FinTech Week 2020, shows that the Securities and Exchange Commission could oversee all cryptocurrency trading platforms. The Commission is therefore seeking to implement regulatory frameworks adopted last year under which cryptocurrency trading platforms should meet the same conditions as any other broker trading in standard financial assets.
Under current legislation, any financial asset trader can get out of the Securities and Exchange Commission’s sights if it indicates that it trades in cryptocurrencies. Ashley Alder, head of Hong Kong’s Securities and Exchange Commission, told Reuters. This should therefore change according to the current proposal.
Another change is that cryptocurrency trading platforms could initially only offer their services to professional investors. At the same time, they would have to ensure that investors are not harmed by the functioning or rather non-functioning of cryptocurrency platforms, i.e. that only the investor’s purchasing or selling decisions have an impact on profit or loss.