Hong Kong Proposes ‘Sandbox’ for Cryptocurrency Exchanges
Hong Kong’s Securities and Futures Commission (SFC) head Ashley Alder said this week that virtual asset trading platforms should be put in a regulatory regime known as a “sandbox”.
Alder said that the approach will afford fintechs that want to work with them special regulatory waivers for a limited period of time. It will essentially be an opt-in approach where exchanges and platform operators can explore the conceptual framework with the SFC in a strict sandbox environment.
The SFC chief added that they will be setting out new rules under which all funds, which invest more than 10 percent of a mixed portfolio in crypto assets, will have to comply, whether or not those crypto assets are securities.