SFC took Regulatory Action against Cryptocurrency Exchanges
According to the news and announcement published by the Hong Kong Securities Futures Commission (SFC) on 9 February 2018, SFC has taken regulatory action against a number of cryptocurrency exchanges and issuers of ICOs.
SFC has issued letters to 7 cryptocurrency exchanges in Hong Kong or with connections to Hong Kong, warning them that they should not trade cryptocurrencies which are "securities" as defined in the Securities and Futures Ordinance (SFO) without a licence.
Most of these cryptocurrency exchanges either confirmed that they did not provide trading services for such cryptocurrencies or took immediate rectification measures by removing relevant cryptocurrencies from their platforms.
The SFC has also written to 7 ICO issuers.
Most of the ICO issuers confirmed compliance with the SFC's regulatory regime or immediately ceased to offer tokens to Hong Kong investors.
For cryptocurrency exchanges and ICO issuers which have no nexus with Hong Kong or do not provide trading services for cryptocurrencies which are "securities" or "futures contracts" in Hong Kong, SFC may not have jurisdiction over them.
Still, if there is suspicion of fraud, SFC is open to refer cases to the Hong Kong Police for investigation.
For legal advice or services on cryptocurrency & blockchain matters, please contact CHOW & CHEUNG, Hong Kong solicitors & notaries [cac@ccsn.hk]
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