Hong Kong regulator warned investors about risks of unlicensed bitcoin futures
The Hong Kong Securities and Futures Commission (SFC) issued an announcement reminding the organizers of trading in futures contracts and other investment products linked to cryptocurrencies to comply with the requirements of the regulator and the relevant regulations.
“Bitcoin futures have been or will soon be launched by certain reliable platforms for trading futures and commodities in the United States, which are regulated by the Commodity Futures Trading Commission and are authorized by the Securities and Futures Commission to provide automated trading services,” the regulator writes. “Hong Kong investors can trade bitcoin futures through intermediaries who are members of these exchanges.”.
The SFC reminds that all entities and intermediaries providing services related to trading Bitcoin futures must obtain its license, even if they themselves are officially located outside Hong Kong, but serve citizens from this jurisdiction.
At the end of its message, the regulator noted that futures trading is conducted not only on large American exchanges, but also on unregulated sites that do not have an SFC license, and recalled that trading in cryptocurrencies involves serious risks, and investors working with such products can incur significant financial losses.
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