An official from the Hong Kong government confirmed that leaders don’t see the need to come up with legislation to ban bitcoin trading in the country. This comes after news on the MyCoin investment scam prompted a thorough investigation and calls for stricter regulation in the cryptocurrency industry.
However, Secretary for Financial Services and the Treasury KC Chan recently made a statement clarifying that bitcoin trading does not pose a significant threat to Hong Kong’s financial markets for now. He added that the cryptocurrency is limited in scope and that it hasn’t been widely accepted in the region yet.
No Bitcoin Trading Ban
Chan emphasized that, in the future, the Hong Kong government can be able to draw from existing legal statures to deal with potential fraud and criminal activity arising from bitcoin trading or other cryptocurrency transactions. For now, he maintained that the government does not see the need to introduce new legislation to regulate trading in virtual commodities or prohibit people from participating in such activities.
As it is, financial authorities in Hong Kong are already exercising strict measures and due diligence in dealing with companies involved in virtual commodities or bitcoin trading operations. He added that his office will continue to monitor activity in this industry and will be watchful of possible issues. “The police will take enforcement action if they find information which involves criminal conduct,” he said.
Progress in the MyCoin investigations has been quick, as financial authorities have already made a few arrests in relation to the scam. Local law enforcement officials continue to monitor the situation and conduct further investigation on the fraudulent operations, which resulted to losses of millions of dollars for investors.
Chan warned that the highly speculative nature of bitcoin trading does pose a risk to investors. Financial regulators in Hong Kong continue to stay in touch with their international counterparts in keeping track of developments in the cryptocurrency industry.