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ARTICLE · 14 NOVEMBER 2018

SFC Announcements On Regulatory Approach To Virtual Assets

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In a keynote speech at the Hong Kong Fintech Week on 1 November 2018, the SFC again asserted its cautious regulatory approach by announcing that it would step up its game in protecting investors of virtual assets.

Hong KongTechnology
Sara Or
Sara Or
Shirley T.W. Chan
Shirley T.W. Chan
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Executive Summary

In a keynote speech at the Hong Kong Fintech Week on 1 November 2018, the Securities and Futures Commission (SFC) again asserted its cautious regulatory approach by announcing that it would step up its game in protecting investors of virtual assets.

A virtual asset is a digital representation of value and include digital tokens (such as digital currencies, utility tokens or security or asset-backed tokens) and other virtual commodities, crypto assets and assets of essentially the same nature. Where the virtual assets fall outside the definitions of "securities" and "futures contracts" under the Securities and Futures Ordinance (the "Non-SF Virtual Assets"), the activities relating to them may fall outside the ambit of the regulator's jurisdiction, leaving investors unprotected.

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