Hong Kong Securities Regulator Warns Of Cryptocurrency Risks Again

On 9 February 2018, the Securities and Futures Commission (the "SFC") issued a statement (the "Statement"), cautioning investors again of the potential risks of investing in cryptocurrencies and initial coin offerings ("ICOs") and using the services of cryptocurrency exchanges. In this regard, it warned investors of the heightened risk of extreme price volatility, hacking and fraud.

The risks

In the Statement, the SFC stated that it had received various complaints from investors, including allegations of misappropriation of assets, market manipulation and fraud. Some investors also complained that they were unable to withdraw fiat currencies or cryptocurrencies from their accounts maintained with cryptocurrency exchanges.