📢Hong Kong strengthens cryptocurrency regulation: OTC trading may be regulated by the SFC🔍
Crypto enthusiasts, pay attention, Hong Kong may soon implement stricter regulation of over-the-counter (OTC) cryptocurrency trading.
According to the South China Morning Post, the Securities and Futures Commission (SFC) of Hong Kong is considering working with the Hong Kong Customs and Excise Department (C&ED) to jointly strengthen the supervision of OTC transactions.
OTC transactions usually refer to private transactions conducted directly between large companies, which often bypass public exchanges. But now, the SFC may intervene, which will help provide a clearer regulatory framework for the cryptocurrency industry.
Why do this? One reason is that there have been some major financial losses and fraud in the cryptocurrency industry recently, especially the collapse of Japanese exchanges, which has raised concerns about the role of OTC transactions by regulators. These transactions are often operated through physical stores, and many are associated with fraudulent activities, so stricter supervision is particularly important.
SFC representatives said that they are working closely with the government and other regulators to establish a robust, clear and consistent regulatory environment to promote the sustainable and responsible development of Hong Kong's virtual asset industry.
Although the need for regulation is generally supported, some industry insiders are still concerned that the specific implementation of regulation may bring confusion, as the responsibilities of the SFC and Customs may overlap.
🗣️ Conclusion:
Hong Kong has recently strengthened its supervision of over-the-counter (OTC) cryptocurrency transactions. Although this policy may cause some volatility in the market in the short term, it will help reduce fraud and illegal transactions in the long run, thereby enhancing investor confidence.
For investors, this is a sign that a safer and more compliant market environment is taking shape; for industry participants, it means that they need to adhere to higher compliance standards and improve their risk management capabilities.
It is believed that with the continuous improvement of the regulatory system, Hong Kong's cryptocurrency market is expected to develop in a more stable and sustainable direction.
💬 What do you think of Hong Kong's possible strengthening of supervision of OTC cryptocurrency transactions? See you in the comments section!
