Authorities in Hong Kong are planning on carrying out a public enlightenment exercise, which has been specifically aimed at informing residents of Hong Kong of the risks involved when investing in cryptocurrencies and ICO’s.
Trading and investing in anything has risks associated with it, which is why two of the leading and most influential financial authorities in Hong Kong; the Financial Services and Treasury Bureau, and the Investor Education Centre; have taken it upon themselves to teach the country all of the ins and outs of cryptocurrency trading, and participation in Initial Coin Offerings. The chairman of the IEC, Dr. Kelvin Wong said;
“ICOs and ‘cryptocurrencies’ are not actual currencies, but a type of virtual commodity. They are not backed by any physical commodity nor by the issuers and are not recognised as a medium of payment or electronic currency. ‘Cryptocurrencies’ are highly speculative and are associated with various kinds of risks. Their prices may be susceptible to significant fluctuations due to speculative activities. Investors may suffer significant monetary losses as a result of the volatile prices.”
They are getting ready to launch this, and give it as much press as possible, including advertisements in print media, online and MTR stations before moving on to television and radio announcements later on in the year.
The undersecretary of the FSTB, Joseph Chan said;
“Through this series of public education initiatives, the government aims to provide the public with a correct and comprehensive understanding of ICOs and ‘cryptocurrencies’, so that they can thoroughly assess the risks before making transactions or investment decisions.”
Cryptocurrencies are a big thing in Hong Kong and how these are regulated are slowly becoming clearer; despite the many crashes that we have seen happen to the crypto market, and they hope that by doing this, they will be able to clear any blurred lines when it comes to the cryptocurrency market.
Once people become clearer on how to handle cryptocurrencies, and fully understand the risks involved; they may be more likely to invest in them.
Original Image Source: Wikipedia