China is strangling cryptocurrency exchanges into submission. Now, Hong Kong is also tightening the net.
Hong Kong's Securities and Futures Commission (SFC), has taken action against a number of cryptocurrency exchanges and issuers of initial coin offerings. The move follows complaints from investors to the securities regulator.
It also comes on the back of recent draconian moves in China, where financial authorities are blocking all websites related to cryptocurrency trading and initial coin offerings including foreign platforms, as «The South China Morning Post» recently reported.
Seven Cryptocurrency Exchanges Warned
As it moves to root out fraudulent activities, the SFC has warned seven cryptocurrency exchanges and seven initial coin offering firms in Hong Kong, or with connections to Hong Kong that they should not trade cryptocurrencies without a licence.
«If investors cannot fully understand the risks of cryptocurrencies and initial coin offerings or they are not prepared for a significant loss, they should not invest,» said Julia Leung, the SFC executive director of intermediaries.
