Hong Kong securities regulators require the exchange to take off the securities tokens

nBankruptcy Commentary: On Friday, the Securities and Futures Commission of Hong Kong (SFC) issued a statement that it has issued a warning letter to seven crypto-currency exchanges stating that certain tokens traded on its platform may belong to securities and require immediate Make rectification. So far, these exchanges have all responded to the agency’s initiatives. The agency said it will no longer tolerate any further violations or repeated touches on securities laws and will step up its enforcement efforts when necessary.n
nTranslation: Clovern
Hong Kong securities regulators appear to be stepping up their efforts to regulate crypto currency transactions involving the first digital token issuance (ICO).n
Hong Kong’s Securities and Futures Commission said in a statement on Friday that the agency has issued a warning letter to seven cryptocurrencies that some of the tokens traded on its platform may be classified as securities. Although the names of the exchanges were not disclosed in the statement, SFC said these tokens were either based in Hong Kong or linked to Hong Kong and ranked the top 20 globally by volume.n
It is reported that SFC will also take a broader approach to alert investors to be careful about the risks associated with currency transactions, and this is but one of them, and from September last year has been euphemistically warned of the possible risks associated with the ICO financing model .n
It is noteworthy that SFC said that the investigation may lead to further measures, but so far have been notified by the exchange have been issued on the investigation of the agency responded.n
The statement said:n
n”Most crypto-currency exchanges have confirmed that they did not provide trading services in such cryptocurrencies, or indicated immediate corrective action, including the removal of cryptocurrencies from their platforms.”n
nSFC also sent a letter to seven ICO organizers who have been offering their shares to Hong Kong investors and the tokens were considered securities by the agency, although the agency did not disclose the names of the seven agencies.n
Prior to the SFC and the Hong Kong government to reach a cooperation, the two sides recently launched a public event designed to educate citizens about cryptocurrency-related potential risks, fraud and hacking issues.n
In the future, the agency said it will no longer tolerate any further violations or repeated touches on Hong Kong securities laws.n
SFC CEO said:n
n”We will continue to monitor the market and enforce it where necessary, but we are also urging market professionals to do their job properly to prevent fraud or suspicious financing and to help us ensure legal compliance.”n

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