Hong Kong regulator warns on unregulated bitcoin futures
A Hong Kong finance regulator announced a new circular on bitcoin futures and other cryptocurrency investment products.
This circular states that only licensed firms have the permission to offer such products within Hong Kong. Moreover, these products are also under the surveillance of the Securities and Futures Ordinance.
The interesting thing about this circular is that it was released on the first day of trading of the futures contracts launched by Cboe. The Chicago-based Cboe went live on Saturday. To be added that CME Group will also go live with its own futures contracts next week.
SFC released the circular on December 11 and warns on unregulated bitcoin futures
This circular has been released by the Securities and Futures Commission (SFC) on December 11.
A regulator wrote in the statement:
SFC warns investors that they have to be sure if bitcoin futures from unregulated cryptocurrency exchanges have “securities” or “futures contract” under the Securities and Futures Ordinance. SFC also reminded investors to be aware that they expose themselves to insufficient liquidity and price volatility when they operate with cryptocurrencies.
A Hong Kong regulator declared:
In the end, SFO declared that the cryptocurrencies exchange companies which fail to obtain a license “may be committing a criminal offence under the SFO.”