A senior executive for Hong Kong'southward Securities and Futures Commission, or SFC, believes more than needs to exist done to tackle cryptocurrency fraud, offer clues about hereafter guidance on digital asset trading in the special authoritative region.

Deputy chief executive Liang Fengyi said the SFC is obligated to expand the telescopic of cryptocurrency supervision in the metropolis-country, especially every bit it pertains to unlicensed trading, according to an English translation of an commodity published in local newspaper ETNet. She explained that, since crypto assets are not recognized as securities or payment methods, they autumn outside the jurisdiction of the SFC. As a effect, many investors who have participated in the nascent asset form take suffered significant losses.

Dissimilar mainland People's republic of china, Hong Kong permits the trading of cryptocurrencies, although the scope of transactions is nether scrutiny. Authorities regulators in the special authoritative region accept put frontward proposals to limit cryptocurrency trading to professional investors on elevation of new licensing requirements.

Equally Cointelegraph reported in May, the Financial Services and the Treasury Bureau of Hong Kong are considering restricting crypto access to portfolios with at to the lowest degree $1 million in assets. If passed, the new guidelines would restrict crypto access to roughly 93% of the city'southward population.

Related: Binance to restrict derivatives trading for Hong Kong users

Multiple crypto exchanges have either halted or limited trading activity in Hong Kong over the past few months. In June, Hong Kong brokerage Futu announced it was halting crypto futures trading over regulatory issues. In August, Binance moved to cake derivatives trading for local traders.