Hong Kong SFC is drafting regulatory requirements for crypto exchanges because the FTX incident
The Securities & Futures Commission of Hong Kong (SFC) stated that it is drafting regulatory requirements for licensed virtual asset exchanges under the new system and will launch a public consultation. It stated that the FTX incident affects other tokens and the entire industry, highlighting the risks of retail investors using trading platforms that are not fully regulated and the importance of whether the regulatory framework can protect investors.
FTX’s application for bankruptcy protection affects the ecology of the currency circle
A series of negative news broke out in the currency circle. Regarding the bankruptcy protection incident of the cryptocurrency exchange FTX, the Hong Kong Securities Regulatory Commission (SEC) stated in response to media inquiries that the incident affected other crypto tokens and the entire industry ecology, highlighting that retail investors use crypto asset trading platforms that are not fully regulated. They will continue to monitor the development of the risks and the importance of whether the regulatory framework can protect investors.
The agency pointed out that with the passage of the “Anti-Money Laundering and Terrorist Financing (Amendment) Bill” by the Legislative Council, the Securities Regulatory Commission is drafting regulatory requirements for licensed crypto asset exchanges under the new system, and will launch public consultations and is closely monitoring The latest developments in the field of crypto assets, with investor protection as the primary goal.
SFC reiterated that while many jurisdictions have adopted looser standards to regulate encrypted asset service providers from the perspective of anti-money laundering or payment, Hong Kong has adopted comprehensive supervision in response to the operation of relevant exchanges similar to securities brokers, including requiring The exchange properly separates client assets in a trusted manner, and regularly submits audited accounts and financial information.
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