What's Hot

    First Citizens to Buy Silicon Valley Bank

    March 27, 2023

    Nasdaq Looking to Launch Crypto Custody Services in Q2 2023

    March 27, 2023

    Africa Moving to Crypto as Alternative to US Dollar

    March 27, 2023
    Facebook Twitter Instagram
    Facebook Twitter Instagram
    The Bull's GazetteThe Bull's Gazette
    Members Area
    • News
      1. Markets
      2. Policy & Economy
      3. Business
      4. Tech
      Featured

      First Citizens to Buy Silicon Valley Bank

      News March 27, 2023
      Recent

      First Citizens to Buy Silicon Valley Bank

      March 27, 2023

      Nasdaq Looking to Launch Crypto Custody Services in Q2 2023

      March 27, 2023

      Africa Moving to Crypto as Alternative to US Dollar

      March 27, 2023
    • Features
      • Opinion
    • Research
      • Publications
      • Market Analysis
      • Contribute
    • Finance & Crypto Guides
    • Consultation
    • Membership
    • Store
    The Bull's GazetteThe Bull's Gazette
    Home»News»Policy & Economy»Hong Kong and Canada Tighten Crypto Regulations Following FTX Downfall
    Policy & Economy

    Hong Kong and Canada Tighten Crypto Regulations Following FTX Downfall

    Anietie DavidBy Anietie DavidDecember 14, 2022Updated:December 14, 2022No Comments2 Mins Read
    Hong Kong and Canada Tighten Crypto Regulations Following FTX Downfall
    Share
    Facebook Twitter LinkedIn Pinterest Email

    In two separate statements this week, the finance watchdogs of Hong Kong and Canada warned investors of risks associated with crypto providers. Both countries are beginning to introduce and expand crypto regulations to fight back.

    Investors have been alerted to the risks associated with virtual asset (VA) platforms that offer “deposits, savings, profits, or staking” services by the Hong Kong Securities and Futures Commission (SFC). The Canadian Securities Administrators (CSA) have strengthened its guidelines for regulating cryptocurrency.

    Hong Kong Recognizes Risks of Investing in Unregulated Platforms

    After the FTX collapse, the Hong Kong Securities and Futures Commission (SFC) issued a warning to investors that they might suffer a large or even total loss of money, especially in the event of fraud or the failure of a VA platform.

    Platforms that guarantee fixed or high interest rates on deposits have received specific attention from the government. The regulator emphasized that unlike insured bank accounts, cryptocurrency deposits are uncontrolled.

    SFC underlined, “VA are exposed to heightened risks including insufficient liquidity, high price volatility, opaque pricing, potential market manipulation, hacking and fraud and may lose all value.”

    The SFC has not reviewed its offer or marketing materials, leaving investors exposed, it further said. However, according to a recent report by Financial Secretary Paul Chan Mo-po, cryptocurrency is “unstoppable.” This could indicate that the area will tighten regulations without hindering the sector’s expansion.

    Stricter Cryptocurrency Regulation and Custody Rules in Canada

    The Canadian Securities Administrators (CSA) has announced that it is stepping up its monitoring of cryptocurrencies. The Canadian regulator has been forced to broaden the criteria that apply to domestic platforms as a result of FTX’s failure. This includes any foreign websites that Canadians can visit.

    The expanded regulations mandate the correct custodianship of Canadian clients’ funds as well as their separation from the platform’s core operations. Additionally, offering leverage or margin to any Canadian clients will be prohibited.

    According to the CSA, competent custodians are those who are under the control of a financial regulator in Canada, the United States, or a comparable nation. It’s interesting to note that CSA thinks stablecoins or stablecoin arrangements may be considered derivatives or securities. As a result, the government has warned cryptocurrency exchanges that it is illegal to permit Canadian customers to trade or receive exposure to such assets.

    Blockchain Canada FTX Exchange Hong Kong Policy
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Previous ArticleThailand Regulators Set to Place Strict Rules on Crypto
    Next Article US Senator, Elizabeth Warren, Proposes Extreme Crypto Bill
    Anietie David

    Anietie has worked in the blockchain industry for three years, gaining experience in blockchain technology, cryptocurrencies, DeFi, and NFTs. As a seasoned content writer, he is passionate about creating effective content strategies for blockchain brands. In addition to content writing, he also has a strong interest in front-end development. When he's not working, he spends his time reading horror novels or playing CODM.

    Related Posts

    Nasdaq Looking to Launch Crypto Custody Services in Q2 2023

    March 27, 2023

    US Republican Introduces Bill to Protect Blockchain Developers

    March 24, 2023

    El Salvador Launches Bitcoin/Lightning Dev Training Office

    March 20, 2023
    Add A Comment

    Leave A Reply Cancel Reply

    Top Posts

    New Crypto Mining Bill in Russia Mandates Earnings Reports

    March 10, 2023

    India Pushes Anti-money Laundering Regulation for Crypto Transactions

    March 8, 2023

    Zambia Explore Crypto Regulatory Framework 

    February 20, 2023

    Our best content, straight to your inbox.

    Disclaimer

    Capital at risk. Content on this website does not constitute financial advice. Please do your due diligence before making any investment.

    Company
    Company

    At the forefront of news and analysis for emerging markets, business, crypto and tech - TBG is redefining financial information through resources for next-generation economics.

    Facebook Twitter Instagram LinkedIn TikTok Discord
    Links
    • About
    • Contribute
    • Advertise
    • Careers
    • Membership
    • Investor Relations
    • Frequently Asked Questions

    TBG Newsletter

    © 2023 The Bull's Gazette.
    • Terms and Privacy
    • Contact Us

    Type above and press Enter to search. Press Esc to cancel.