Hong Kong’s Outgoing SFC Chairman Ponders Regulation for Exchanges

Hong Kong’s Outgoing SFC Chairman Ponders Regulation for Exchanges

Carlson Tong Ka-shing tells South China Morning Post a complete ban on cryptocurrency platforms will not be the appropriate move in the internet era

Banning such platforms will only compel its citizens to look for alternative solutions in foreign markets.

The Securities and Futures Commission (SFC) leadership will exchange hands on 19 October. Tong Ka-shing, the exiting chairman, says the agency’s reach extends to securities only; these new assets may not meet the considerations of a security. He continues that the regulating body has to understand how digital platforms can be regulated to a criterion akin to legal trading venues.

SFC Warnings

In recent months, the SFC gave out warnings for traders to be cautious in trading on unregulated exchanges. The regulating body also warned operators to act in accordance with on-hand SFC regulations.

Proposals for Hong Kong Crypto Regulation Receives a Warm Welcome

Domestic cryptocurrency exchange firms welcomed the news with good graces. Angelina Kwan of BitMEX and Jeremy Allaire of Circle are hopeful they can work with the SFC on proposed cryptocurrency regulations.

Related news

OKCoin Founder Star Xu May Seek Backdoor IPO by Acquiring a Hong Kong-Listed Company

Star Xu, founder of world’s leading cryptocurrency exchange OKCoin/OKEx, may be seeking a possible backdoor listing by buying a majority stake of a Hong Kong-listed company. According to shareholding disclosures shown on Hong Kong Stock Exchange (HKEX), Star Xu (Xu Mingxing by his Chinese name), has purchased 60.49% stake in LEAP Holdings Group Ltd, a listed company mainly engaged in construction engineering. Through his company OKC Holdings Corporation, Xu has bought about 3.2 billion shares of the company at the price of HK$0.152 (around US$0.02) per share, which means this acquisition costs HK$484 million (approximately US$62 million) in total. The company has halted trading its shares on the stock exchange since Jan. 10 to prevent its stock price from fluctuating as a result of this acquisition. Once the effort is approved by HKEX, Xu will be the largest shareholder of the company. Industry insiders disclosed that the reverse takeover could provide an approach for OKCoin to become a public company in Hong Kong, instead of going through the complicated procedures of applying for an initial public offering (IPO) and skipping all the regulatory hoops. Huobi, another leading crypto exchange originated from Mainland China, took a similar path last August. The company acquired 73.73 percent of a listed company named Pantronics Holdings Ltd., costing around $70 million to become its largest shareholder. While the crypto exchange business is currently not fully compliant on the global scale, in addition, the HKEX has been stepping up efforts to crack down on the backdoor listings to clean up the market and improve the quality of listed companies, in this context, a backdoor listing would be very difficult to operate. Other major firms in the crypto space, like mining giants Bitmain, Canaan and Ebang, are also looking to host their IPOs in Hong Kong. However, little progress has been seen, with Canaan letting its application lapse, Ebang struggling to refile and Bitmain’s still pending.
8BTC

Sudden Selloff Hits Hong Kong Stocks: $4.77 Billion Vaporized

A number of stocks tanked sharply without warning earlier today on the Hong Kong equity market, which is the fourth largest in the world. The market rout left investors with no time to exit their positions, leaving them with losses amounting to as much as $4.77 billion in a matter of minutes. Share prices of The post Sudden Selloff Hits Hong Kong Stocks: $4.77 Billion Vaporized appeared first on CCN
CCN

Hot news

By continuing to browse, you agree to the use of cookies. Read Privacy Policy to know more or withdraw your consent.