Hong Kong Regulator Warns Against High Leverage Cryptocurrency Futures Contracts

[Shahinaz]

Hong Kong’s Securities and Futures Commission (SFC) has issued a warning against cryptocurrency futures contracts. The regulator reminds the public of the higher risk of using leverage to trade such contracts and that the platforms themselves may be operating illegally.

The warning comes on the back of newly-detailed regulatory proposals to govern the wider virtual asset exchange industry. BeInCrypto reported earlier today on a speech given by SFC Chief Executive Officer, Ashley Alder during Hong Kong FinTech Week 2019.

Existing Regulations and Cryptocurrency
The SFC is looking to apply existing securities regulations, with a few tweaks, to the virtual currency exchange industry. Those exchanges offering at least one digital asset deemed a security or product considered a futures contract will be forced to register with the authority. Alder says this will make for an “opt-in” system. Those exchanges not wanting to be regulated can simply drop all assets deemed securities and futures products and continue offering their services without SFC oversight and safeguards.

more : https://beincrypto.com/hong-kong-regulator-warns-against-high-leverage-cryptocurrency-futures-contracts/