Hong Kong Orders Exchanges to Delist Securities Tokens

Hong Kong's securities regulator appears to be stepping up efforts to regulate cryptocurrency exchanges involved with initial coin offerings (ICOs). In a statement released today, Hong Kong's Securities and Futures Commission (SFC) revealed it has sent warning letters to seven cryptocurrency exchanges advising that certain tokens being traded on their platforms may be defined as securities. Though the names of the exchanges were not disclosed, the SFC indicated they are either based in or connected to Hong Kong and among the top 20 in volume globally. Ashley Alder, the SFC's Chief Executive Officer, stated:

"We will continue to police the market and enforce when necessary, but we are also urging market professionals to do proper gatekeeping to prevent frauds or dubious fundraising and to assist us in ensuring compliance with the law."