New crypto rules released in Hong Kong

Posted 01 November, 2018

The securities market in Hong Kong has got new regulation aimed at crypto funds.

The new rules were developed and launched by the Hong Kong securities market regulator. According to the released regulation, the asset managers with cryptos accounting for more than 10% of their portfolio will have to pass certification to get the required license. Specifically, the exchanges dealing only with large professional investors will reportedly be able to join sandbox for checking AML and other rules.

The regulator's statement reads:

"In order to afford better protection to investors, the SFC considers that all licensed portfolio managers intending to invest in virtual assets should observe essentially the same regulatory requirements even if the portfolios (or portions of portfolios) under their management invest solely or partially in virtual assets, irrespective of whether these virtual assets amount to "securities" or "futures contracts".

The local market players have been waiting for the official legal framework for the crypto sector. Moreover, many trading platforms dealing with cryptos (OKEx, BitMEX) have chosen Hong Kong seeing its autonomous position, especially once Beijing decided to ban cryptocurrencies last year.

Those platforms that decide to enter the new sandbox will reportedly have to prove that they can manage risks and comply with the legal norms. At the same time, some market players can consider this regulation too strict, since they will have no chance for financial stimulation measures or derivatives and futures trading.

The market experts believe this decision will be a good development for the industry, though the firms will face challenges to comply with all rules.

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01 November, 2018 14:03

← Seoul agrees with USA on exception for oil imports

South Korea can get exception and import Iranian oil further after the sanctions. Seoul has generally managed to come to terms with Washington regarding further oil imports from Iran. The USA will launch new restrictions against Iran in early November. In fact, South Korea is not the first country with such request. For now, many customers of the Iranian oil are negotiating with the US administration regarding this issue. Brent prices dropped to $74.57/bbl driven by the fact that OPEC members planned to ramp up production to cover the possible shortage of Iranian oil.

Seoul agrees with USA on exception for oil imports

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01 November, 2018 11:20

HKEX targets blockchain-based post-trade instrument →

The Hong Kong Stock Exchange has reportedly entered into an agreement with Digital Asset to create a tool for post-trade processing. The new blockchain instrument is said to be applied to Northbound Stock Connect, the system developed by HKEX back in 2014. This is system is designed for overseas and Chinese investors allowing them to trade securities in each other' markets making use of trading and clearing solutions provided by the local trading platforms. The companies have already completed the functional part of the system. Specifically, with the pilot product, the group of insiders can set the settlement scheme in advance, which means they can avoid problems summoned by the time difference in their countries.

HKEX targets blockchain-based post-trade instrument
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