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ARTICLE · 16 FEBRUARY 2018

SFC Issues Reminder On Cryptocurrency-Related Products And Derivatives

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On 11 December 2017, the Securities and Futures Commission of Hong Kong (SFC) issued a circular, which reminds financial service providers of the legal and regulatory requirements associated with Bitcoin ...

Hong KongFinance and Banking
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SFC Issues Reminder on Cryptocurrency-Related Products and Derivatives

On 11 December 2017, the Securities and Futures Commission of Hong Kong (SFC) issued a circular, which reminds financial service providers of the legal and regulatory requirements associated with Bitcoin futures contracts ("Bitcoin Futures") and other cryptocurrency-related investment products. Furthermore, it cautions investors of the underlying investment risks, and investors should carefully weigh them against their own risk appetite.

Licensing and other regulatory requirements in Hong Kong

The circular notes that futures and commodities exchanges in the United States have launched or will soon launch Bitcoin Futures where Hong Kong investors may be able to trade through an intermediary, a member of these exchanges. Bitcoin Futures have the conventional features of a "futures contract," which is defined in the Securities and Futures Ordinance (SFO) to include "a

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