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Cyber Bitcoin
Edited by qqqpeter at 2019-10-8 13:48 reported that in the recent political turmoil in Hong Kong, when the trading volume of Bitcoin in Hong Kong reached an unprecedented level, the Hong Kong Securities and Futures Commission (SFC) issued the first cryptocurrency regulation, which regulates the management of the Crypto Fund. Handling virtual assets, with a particular focus on risk management, message disclosure, etc.


On last Friday(10/4), the Hong Kong Securities and Futures Commission (SFC) officially issued a 32-page, relevant rule on the regulation of cryptocurrencies "applicable to the standard terms and conditions of licensed corporations that manage investment portfolios invested in virtual assets", virtual assets The definition of the initial public offering (ICO) processing framework is specifically stated.

According to the documents released by the SFC, SFC initially defines virtual assets as: assets that express value in digital form.

It can be in the form of a digital token (such as a digital currency, a functional token, or a token collateralized by a security or asset), any other virtual commodity, an encrypted asset or other substantially identical asset, and in fact whether certain assets are Forms the "securities" or "futures contracts" covered by the Ordinance.

SFC's regulatory policy

According to Decrypt, a resignation officer of the Securities and Futures Commission mentioned in October 2018:

It is not the right way to completely ban the use of cryptocurrencies. On the contrary, it is more appropriate to treat cryptocurrencies with a more open mind.

China is the cryptocurrency that was banned in July 2018 and closed all transactions. It can be seen directly that at least in terms of policy, the Hong Kong Government faces different attitudes towards cryptocurrencies, which also affects the direction of the relevant regulations.

In the above-mentioned ICO "initial public offering" which made the governments savage last year, the document also proposed the ICO's processing framework. At that time, the Beijing government and many countries were strict and had no space to supervise. Hong Kong was open under the norm:

When participating in the “IPO” of virtual assets, the crypto fund should ensure the following three points:

1. The virtual assets allocated in the initial issuance activities are allocated to the funds they manage in a fair and equitable manner.

2. Do not favor individual funds in the distribution process

3. (i) the actual allocation after the execution of the transaction; (ii) the actual distribution after the execution of the transaction; (iii) the reason for the difference between the expected and actual allocation is recorded

Information disclosure

In the part of the information disclosure, the regulatory regulations also select "The Virtual Asset Fund Management Company should also provide any other information that the SFC may require from time to time." It also indicates that the SFC may require information to be provided on a regular or irregular basis; The virtual asset fund management company responded promptly to the SFC's enquiries and investigations in an open and cooperative manner.

Risk Management

For risk management, the Hong Kong Securities Regulatory Commission said that the virtual asset management company should establish and maintain an effective risk management and reporting mechanism, including market risk, liquidity risk, counterparty risk, operation and network security risks of stress testing. There are more detailed rules to ensure that the virtual asset fund has certain stability; it also requires that the risk management policy of the virtual asset fund management company should establish a higher system for the funds to monitor and control the related risks.

The regulations also propose that virtual asset fund management companies should comply with all legal and regulatory requirements (including their licensing conditions) applicable to their business activities, as well as their own internal policies and procedures; and encapsulate cryptocurrencies increasingly prepared Obviously, the regulations of various parties have also arisen accordingly. The relevant regulatory rules proposed by the Hong Kong Securities and Futures Commission this month also represent a further step forward in Hong Kong's supervision in the field of encryption.

Is it related to the recent political turmoil?

It is understood that in recent days, Hong Kong investors have begun to spend money on Bitcoin and other cryptocurrencies, and SFC has chosen to introduce cryptocurrency-related regulations at this moment, which inevitably lead to internal reverie.

Therefore, Joyce Yang, founder of Global Coin Research, a research firm that analyzes global trends, told Decrypt:

I think this has nothing to do with the protests in Hong Kong. They are transparent about the ideas in this area and have developed guidelines that should be designed to promote more capital investment in start-ups in the region.

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