Cryptocurrency Exchange

London Stock Exchange Trading Tech to Power New Hong Kong Crypto Exchange


As per the latest news published in an LSEG Technology press release, LSEG Technology, the technology solutions provider for the London Stock Exchange Group, has declared that its corresponding engine will be used to control a fresh Hong Kong-based digital assets exchange.

In the Hong Kong context, there have been new signs from the local safeties controller, the Securities and Futures Commission (SFC), that a lawful outline to control cryptocurrency exchanges is under thought, with the SFC chairman stating last October:

“We need to see if and how these [digital assets trading] platforms can be regulated to a standard that is comparable to that of a licensed trading venue, while at the same time ensuring investors[‘] interest[s] are being protected.”

Hong Kong’s securities regulator issued a statement setting out guidelines for funds dealing with cryptocurrency Thursday, Nov. 1, saying it could move to formally regulate exchanges.

For many different people, a licensing procedure will need objects to notify the SFC about their commercial practices.

The statement says:

“In order to afford better protection to investors, the SFC considers that all licensed portfolio managers intending to invest in virtual assets should observe essentially the same regulatory requirements even if the portfolios (or portions of portfolios) under their management invest solely or partially in virtual assets, irrespective of whether these virtual assets amount to ‘securities’ or ‘futures contracts.’”

In what it called guidance on regulatory standards, the independent Chinese territory’s Securities and Futures Commission (SFC) set in gesture sequences of ways that chief Ashley Alder hinted would end in a official controlling situation.

The Securities and Futures Commission (SFC) notes concernedly the growing capitalist interest in gaining exposure to virtual assets via funds and unauthorized mercantilism platform operators in Hong Kong. The SFC has known vital risks related to investment in virtual assets and these area unit embarked on below. So as to deal with these risks, the SFC is supplying steerage on the restrictive standards expected of virtual plus portfolio managers and fund distributors. The SFC is additionally exploring an abstract framework for the potential regulation of virtual plus mercantilism platform operators.

While virtual assets haven’t expose a cloth risk to monetary stability2, there’s a broad accord among securities regulators that they cause vital capitalist protection risks. The restrictive response to those risks varies in several jurisdictions, betting on the restrictive remit, the dimensions of the activities and their impact on capitalist interests and whether or not virtual assets area unit deemed monetary merchandise appropriate for regulation.

Nonetheless, aboard this positive impact, the report highlights that the employment of innovative technologies could “magnify or expose new sorts of monetary risk.” to the present finish, it advises unendingly “upgrading” restrictive frameworks to stay pace with disruption and avoid the emergence of “possible restrictive loopholes.”

In the case of digital currencies, HKEX notes that completely different|completely different} interpretations of their significance have prompted different jurisdictions to line divergent restrictive targets for oversight of the arena.

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