Hong Kong: Securities regulators call for cryptoregulation to combat fraud

The Hong Kong Securities and Exchange Commission has expressed its concern about the lack of anti-fraud regulation in the crypto sector, the local news agency The Standard said May 30.

Her boss, Thomas Atkinson, pointed to problems related to the existing regulatory uncertainty over Initial Coin Offerings (ICOs) and crypto currency trading.Atkinson, who retired from Canada’s largest securities regulator, the Ontario Securities Commission (OSC), in 2016, said the structure of certain crypto exchanges was “outside the scope of the securities business,” the report said.

The official called on local lawmakers and authorities to develop an approach to monitoring crypto companies, stressing that the crypto market is currently still vulnerable to large risks such as fraudulent activity.This new statement follows recent March Securities Token Offerings (STOs) guidelines issued by the Securities Regulatory Commission. In the official document, the Securities and Exchange Commission of Hong Kong said that security tokens are likely to be treated as classic securities and should therefore be covered by applicable securities laws.

The regulator had also previously issued a statement with guidelines for crypto funds in which it announced a future regulation of crypto exchanges.