The regulator of Hong Kong, it seems, is stepping up efforts to regulate cryptocurrency exchanges associated with the initial sentences tokens (ICO).
In a statement issued Friday, the Commission on securities and futures of Hong Kong (SFC) announced that it had sent letters to seven other cryptocurrency exchanges, with the requirement to remove certain tokens that can be classified as securities. The names of the exchanges were not disclosed, but SFC have indicated that they either founded or are associated with Hong Kong, and are in the top 20 largest exchanges in the world.
This step is part of the SFC, which commenced on 5 September 2017, for the protection of investors and inform them about the possible risks of the ICO projects.
SFC stated that the letter could lead to further action, but the probability of this is small, since all exchanges somehow responded to the request:
Most of these crypto-currency exchanges have either confirmed that they do not work with these tokens, or taken urgent action to remove those tokens from their platforms.
SFC also appealed to the seven unnamed organizers of the ICO projects that focus on investors from Hong Kong and whose tokens are classified by the Agency as securities.
The Agency also announced that in future it will not tolerate any violations, especially repeated violations of the securities laws of Hong Kong. Ashley alder, CEO of SFC said:
We will continue to monitor the market and enforce the law, but we also encourage professionals to work to help us prevent fraud.