Hong Kong regulator: 'We will continue to monitor' the crypto-bags and sales

The Hong Kong financial regulator promised to continue "monitoring" the cryptocurrency and the ICO markets on Friday during a new warning to potential investors.

In an announcement by the Commission of Securities and Futures (SFC) of the territory, CEO Ashley Alder said that after an investigation of the suppliers of the ICO and the criptobolsas, the "market professionals" should also play their role to ensure legality of the issuance and trade of tokens. This echoes similar sentiments from the US regulator, the Securities and Exchange Commission (SEC) in December.

"We will continue to control the market and enforce it when necessary," he said. "But we are also urging market professionals to carry out adequate control to avoid frauds or doubtful collections of funds and help us ensure compliance with the law."

Hong Kong has sought to strike a balance between permissiveness and investor protection in relation to cryptocurrency and the regulation of ICOs.

In contrast to mainland China, where cryptocommerce and ICOs are de facto banned, lawmakers have chosen a lackluster approach, with the SFC issuing warnings instead of restrictions before China's ban in September 2017.

The result has been a burgeoning cryptostart-up scene in Hong Kong, with the important Bitfinex international cryptocurrency pool among the best-known residents. Binance, currently the second largest cryptobolse in the world by volume of operations, has also been established there, despite the fact that CEO Zhao Changpeng opts for a presence in several countries.

As China seeks to close the network in the remaining bag gaps, meanwhile, the outlook for Hong Kong remains similar to previous ones, SFC suggests.

"If investors can not fully understand the risks of cryptocurrencies and ICOs or are not prepared for a significant loss, they should not invest," Julia Leung, executive director of intermediaries for the organization, continued, underscoring the responsibility of the investors themselves.

"Investors that store their fiduciary currencies and cryptocurrencies with unregulated cryptocurrency bags must be aware of the risks of piracy and asset misappropriation."