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Hong Kong Securities and Futures Commission (SFC): No company may offer unlisted bitcoin futures contracts in Hong Kong

Hong Kong's financial regulator has issued a new circular targeting Bitcoin exchanges and other cryptocurrency-related investment products.

On December 11, the Hong Kong Securities and Futures Commission (SFC) issued a circular informing that only licensed companies are permitted to provide such products in Hong Kong. Specifically, the issuance of these products falls under the Securities and Futures Ordinance "Under the provisions of the" two types of regulated activities. "

Obviously, the move is targeted at the CBOE's first-day online bitcoin futures contract product. CBOE officially launched the product later Sunday. In addition, the CME Group will launch its own bitcoin futures contract next week.

Hong Kong Securities and Futures Commission wrote in the notice:

"Certain futures and commodity exchanges have or will soon launch bitcoin futures and these exchanges are regulated by the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Futures Commission (SFC) to provide automated Trading Services. "
The notice also said:

"Hong Kong investors may be able to trade Bitcoin Futures through intermediaries in these exchanges ... Please note that the SFC is required to obtain a SFC license if you want to provide any commercial services related to Bitcoin futures."
SFC also highlights other forms of cryptocurrency-related investment products, including cryptocurrency options.

According to the notification, the provision of these services without a license "may be a violation of the SFO".

SFC warns investors to check whether bitcoin futures from an unregulated cryptocurrency exchange constitute a "futures contract" or "security" under SFO. SFC also reminds investors of the potential risks involved in encrypting currency transactions, including lack of liquidity and price volatility.