Hong Kong regulators released bitcoin futures warning

nOn the first trading day after the Chicago Board Options Exchange (CBOE) formally launched a futures contract on Sunday night, the Securities and Futures Commission (Hong Kong Securities and Futures Commission) released a report on bitcoin futures and other digital currency-related investments Product notification. The notification shows that the institutional entity that provides such products in Hong Kong must obtain a license or else it will constitute a criminal offense under the SFO and at the same time prompts investors to beware of the potential risks involved in the digital currency transaction including liquidity shortages and price fluctuations .n
nTranslation: Clovern
Hong Kong’s financial regulator recently released a new circular on Bitcoin futures and other digital currency-related investment products.n
The Securities and Futures Commission (SFC) issued a circular on December 11 stating that only licensed agencies can provide such products in Hong Kong and specify that this is the Securities and Futures Ordinance (“Securities and Futures Ordinance” “Under the” Type 2 regulated activities. “n
It is also noteworthy that the announcement was released on the first trading day following the official launch of the futures contract on the Chicago Board Options Exchange (CBOE) late on Sunday. Subsequently, CME Group will also launch a Bitcoin futures contract next week.n
In response, the regulator wrote:n
n”Bitcoin futures have been or will soon be launched by some of the mature futures and commodity exchanges regulated by the U.S. Commodity Futures Trading Commission and authorized by the Securities and Futures Commission to provide automated trading services.”n
“Investors in Hong Kong can trade Bitcoin Futures through their member agencies on these exchanges, and the industry is cautioned that the party that carries out the business must obtain a license from SFC to provide any other business related to Bitcoin futures.”n
nSFC also highlights other forms of cryptocurrency-related investment products offered to investors in the region, including cryptocurrency options. According to the notification, the provision of these services without a license “may be a criminal offense under SFO”.n
SFC warns investors to verify whether a Bitcoin futures from an unregulated digital currency exchange constitutes a “futures contract” or “security” under the SFO before investing. SFC also reminds investors of potential risks in digital currency trading, including lack of liquidity and price volatility.n

Leave a Reply

Your email address will not be published. Required fields are marked *