Hong Kong Securities Regulatory Commission Plans To Fight Cryptocurrency Trading Fraud

Hong Kong Securities Regulatory Commission Plans To Fight Cryptocurrency Trading Fraud

China's Securities Regulatory Commission stated that it will fight illegal cryptocurrency trading and expand its supervision over virtual assets and unlicensed cryptocurrency transactions.

The deputy chief executive of China's Securities Regulatory Commission (SRC), Liang Fengiy, said that there are still many cases of virtual asset fraud on the market. While cryptocurrencies and digital assets in general are not within the jurisdiction of China's SRC, investors are still at risk of suffering from losses due to fraud.

The commission is looking forward to supervision over the industry and starting to license companies and projects in order to allow them to function legally. In addition to cracking down on unlicensed trading, the SRC is looking forward to incentivizing financial education among cryptocurrency investors.

The SRC will also launch a transaction database that will be used in order to track and report illegal transactions that are being used for money laundering or funding illegal activities. Previously, the Hong Kong police department cracked down on Sing Gao Bulk market-making group, which led to the arrest of 12 individuals and the confiscation of more than HK$900 million worth of property.

The China Securities Regulatory Commission CEO said that, since the start of the pandemic last year, the Global Central Bank adopted a Q&A (Quantitative Easing) policy, which will incentivize investment in the country's economy. Usually, a Q&A policy leads to a bullrun on both the stock and digital assets markets.

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