CryptoPolyTech.com
Crypto, Politics, Tech, Gaming & World News.

DeFi projects could face regulatory requirements, says Hong Kong regulator | CPT PPP Coverage

 | cutline • press clip • news of the day |

Cryptopolytech (CPT) Public Press Pass (PPP)
News of the Day COVERAGE

200000048 – World Newser
•| #World |•| #Online |•| #Media |•| #Outlet |

View more Headlines & Breaking News here, as covered by cryptopolytech.com


DeFi projects could face regulatory requirements, says Hong Kong regulator appeared on coinjournal.net by Hassan Maishera.

Key takeaways

  • A Hong Kong regulator has revealed that DeFi projects could be subject to regulatory requirements.

  • The SFC said DeFi activities fall within the scope of the Securities and Futures Ordinance.

  • Hong Kong’s new licensing regime for digital asset trading platforms takes effect in June 2023

DeFi projects could face regulatory requirements in Hong Kong

Keith Choy, interim head of intermediaries at Hong Kong’s Securities and Futures Commission (SFC), revealed on Wednesday, April 12th, that decentralised finance (DeFi) projects could face licencing requirements and regulation in the country. 

According to the SFC, DeFi activities fall within the scope of the Securities and Futures Ordinance and will be subject to the same regulatory requirements as traditional finance (TradFi). 

Choy mentioned this while speaking at the Web3 Festival in Hong Kong. This latest cryptocurrency news comes after the United States and France recently published reports on DeFi regulation. 

Choy’s speech doesn’t come as a surprise, as the SFC has previously pointed out that the DeFi ecosystem is in need of regulation. However, the regulatory agency is yet to lay out its plans on how to properly regulate the ecosystem. Choy said;

“Providing automated trading services is a regulated activity under the SFO. If a decentralized platform allows trading in virtual assets, which constitutes securities or futures as defined under the SFO, the platform and operators are required to have a Type 7 license.”

Collective investment schemes also need authorisation

The SFC pointed out that authorisation requirements are also necessary when companies wish to offer a collective investment scheme to the public in Hong Kong

According to Choy, DeFi presents regulatory agencies with issues, including financial stability and limited transparency, resulting from a lack of data and unregulated firms and activities. 

He also discussed market integrity issues like price oracle manipulation, front-running transactions and investor protection concerns.

Hong Kong is one of the leading crypto hubs in the world. In February, Interactive Brokers launched its crypto trading services in Hong Kong. 

Hong Kong’s new licensing regime for digital asset trading platforms is set to come into effect in June 2023.

FEATURED ‘News of the Day’, as reported by public domain newswires.

Find more, like the above, right here on Cryptopolytech.com by following our extensive quiclick links appearing on images or [NEWSer CHEWSer].
View ALL Headlines & Breaking News here.

Source Information (if available)

This article originally appeared on coinjournal.net by Hassan Maishera – sharing via newswires in the public domain, repeatedly. News articles have become eerily similar to manufacturer descriptions.

We will happily entertain any content removal requests, simply reach out to us. In the interim, please perform due diligence and place any content you deem “privileged” behind a subscription and/or paywall.

CPT (CryptoPolyTech) PPP (Public Press Pass) Coverage features stories and headlines you may not otherwise see due to the manipulation of mass media.

We compile ‘news of the day’ content in an unbiased manner and contextually classify it to promote the growth of knowledge by sharing it just like DeFi projects could face regulatory requirements, says Hong Kong regulator

First to share? If share image does not populate, please close the share box & re-open or reload page to load the image, Thanks!

You might also like