How Hong Kong’s law protects those drawn to crypto and virtual asset investments
City has introduced groundbreaking, tailor-made laws designed to protect the public when investing in new class of financial products
Here in the city, new and groundbreaking legislation has been introduced to implement a regulatory framework which specifically addresses virtual assets, cementing Hong Kong’s status as an innovative global financial hub.
The incursion of cryptocurrencies and virtual assets into the territory of everyday investment has created additional dangers for the unwary. Without proper regulation, virtual asset products can magnify the dangers of investing, which is why cryptocurrencies have long been associated with speculative bubbles, misleading advertising and fraud.
Whilst this highlights the volatility of the cryptocurrency market, it is also a clear indicator that cryptocurrencies are here to stay. It is precisely this volatility inherent in the value of virtual assets that provides the investing public with the potential for great returns and the risk of great losses. The apparent risks presented by this asset class mean that effective regulation of this market has never been more important.
In response, Hong Kong has created more nuanced and tailor-made criminal offences designed to protect the investing public.