DefiCoins Stays Ahead of the Curve by Preparing for DeFi Licensing Requirements in Hong Kong
Thursday April 13th 2023 – DefiCoins, a leading decentralized finance (DeFi) project, is taking proactive measures to prepare for regulatory changes in Asia and other parts of the world.
Hong Kong's Securities and Futures Commission (SFC) recently suggested that DeFi projects might need to comply with licensing requirements and regulations.
This news from the SFC follows similar discussions in the United States and France about DeFi regulation.
Keith Choy, the interim head of intermediaries at the SFC, explained that DeFi activities falling under the jurisdiction of the Securities and Futures Ordinance (SFO) would need to adhere to the same regulatory standards as conventional financial operations.DeFiCoins is committed to regulatory compliance
DefiCoins' commitment to regulatory compliance and alignment with industry standards showcases its dedication to long-term growth and resilience.
Investors can confidently rely on DefiCoins' adaptability to regulatory changes, ensuring the project remains a reputable and dependable DeFi platform.
The SFC also pointed out that offering automated trading services is a regulated activity within the scope of the SFO.
Platforms facilitating trading in virtual assets classified as securities or futures must obtain a Type 7 license.
Additionally, providing collective investment schemes to the public in Hong Kong entails authorization requirements.Regulators are grappling with how to regulate DeFi
Choy recognized the difficulties DeFi poses to regulators, including financial stability, restricted transparency, and unregulated firms and activities.
He also addressed market integrity issues such as price oracle manipulation, front-running transactions, and concerns surrounding investor protection.
In December 2022, the SFC released a statement cautioning investors about the risks linked to virtual asset platforms.
Hong Kong's new licensing system for virtual asset trading platforms becomes effective in June 2023, accompanied by a grandfathering period.
DefiCoins is committed to staying current with regulatory developments, guaranteeing the platform's continued success and providing a secure, reliable environment for its users.
Visit the DefiSwap website at https://dex.defiswap.io to explore its advanced decentralized finance solutions and to stay informed on the latest developments.