BSV
$46.39
Vol 14.81m
-1.38%
BTC
$68642
Vol 45941.39m
-0.41%
BCH
$334.7
Vol 262.43m
-0.25%
LTC
$66.89
Vol 327.08m
0.23%
DOGE
$0.16
Vol 3478.94m
10.31%
Getting your Trinity Audio player ready...

Financial regulators in Hong Kong have issued an alert to investors to be aware of unauthorized digital currency investment schemes, which could reportedly constitute a type of collective investment scheme (CIS).

CIS cannot be offered for public sale in Hong Kong except with the express permission of the country’s Securities and Futures Commission (SFC). Unauthorized CIS offers without the appropriate licensing or registration constitute a criminal offense in some cases, as well as falling short on key requirements of investor protections.

The regulator warned investors to be extremely cautious about investing in schemes of this nature, and particularly following a number of complaints about investments in similar unregistered funds in the past.

The commission said it would be establishing a new Suspected Unauthorized CIS Alert List, which will document investment arrangements that have come to the regulator’s attention which may not be appropriately compliant.

Christina Choi, Executive Director of Investment Products at the SFC, said these types of unregistered investment products were by definition extremely risky.

“Unauthorized investment arrangements are highly risky and investors may lose all their investments. Investors are urged to check the new alert list and find out whether the arrangement is authorized by the SFC before investing.”

The regulator said it would continue to work with the Investor and Financial Education Council in raising awareness about the risks of CIS and other unauthorized investment products, to safeguard investors from losing out further.

It comes amid fresh warnings from the SFC on specific tokens and ICOs, including the LABS Security Token, a real estate fractional investment token that was added to the Suspected Unauthorized CIS Alert List on its launch.

It comes against a backdrop of clear licensing requirements for those operating in Hong Kong, with the regulator regarded as having one of the most developed schemes of regulation in the world for licensed virtual asset service providers.

Watch: CoinGeek Zurich panel, The Future of Trading & Digital Assets

Recommended for you

Zanzibar launches blockchain sandbox for startups
Zanzibar seeks to support blockchain startups and recently launched a sandbox; meanwhile, Vietnam has launched a national blockchain strategy.
November 5, 2024
FINRA: Metaverse to hit $3T by 2031, but poses regulatory risks
FINRA says it has observed more players in the securities industry diving into the metaverse but warns that they must...
November 4, 2024
Advertisement
Advertisement
Advertisement