The chairman of Hong Kong’s Securities and Futures Commission, Carlson Tong Ka-shing has said that there is no plan to ban digital currencies in the country.
Chairman Ka-shing stated that the country is planning a regulatory framework to ensure investors are protected.
Speaking to the Hong Kong based South China Morning Post, he said that he didn’t believe that the ban approach was in the interest of the industry.
“It will not work in today’s internet world when trading can cross national boundaries. Even if we were to ban them, transactions can still be easily conducted via platforms in overseas markets.”
He continued by saying that a proper legal framework is to be put in place to ensure that the steps taken at regulation was the appropriate one. The chairman deviated with the norm of many regulators by saying that as a new technology, digital tokens cannot be considered securities.
He rather thinks a proposition is necessary to evolve appropriate means of classifying tokens. He suggested creating platforms meant for “new technology”.
“We need to see if and how these platforms can be regulated to a standard that is comparable to that of a licensed trading venue, while at the same time ensuring investors interest are being protected.”
Reports from the country say that crypto exchanges are enthusiastic over the development as they see the SFC move as a policy in the right direction.
Speaking about the policy, the chief operating officer of BitMex Angelina Kwan told the media that the policy would help the industry.
Jeremy Allaire of Circle said that his firm is willing to work with the government to advance the policy and see that the industry regulatory framework becomes a reality.
Since last year, SFC had announced that it was keeping a close eye on the digital currency industry. Sequel to the announcement, were warnings of the hazards associated with crypto investment which the agency said may be securities.
It is now apparent that the regulators have come to terms with the fact that the industry has come to stay. The best option now is to ensure that it is regulated to ensure that it operated with the ambit of relevant financial laws.