Abstract : Some regions may have only light regulation of virtual asset trading platforms without any investor safeguards.
October 25 (ChainDD) The Investor and Financial Education Committee (IFEC), part of the Securities and Futures Commission, Hong Kong's securities regulator, said some trading platforms may be licensed or registered with overseas regulators, but each region has different guidelines for the regulation of such platforms.
Some regions may have only light regulation of virtual asset trading platforms without any investor safeguards.
In addition, due to the cross-border nature, the recovery process for investors will be quite difficult in the event of a dispute.
If the trading platform collapses or ceases to operate, investors may find it difficult to obtain compensation through legal channels.
If these trading platforms do not have any connection to Hong Kong, law enforcement and regulatory authorities may also be unable to assist.