fbpx
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA
Sunday, October 1, 2023
Online Crypto College
CREATE FREE ACCOUNT
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
    • Blockchain
    • Regulation
    • Trading
  • Learn Crypto For Free
  • DipSnyper Bot
No Result
View All Result
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
    • Blockchain
    • Regulation
    • Trading
  • Learn Crypto For Free
  • DipSnyper Bot
No Result
View All Result
Online Crypto College
No Result
View All Result

Hong Kong classifies NFTs as financial asset, mandates licensing

June 7, 2022
in Regulation
Reading Time: 2 mins read
A A
Hong Kong classifies NFTs as financial asset, mandates licensing
ShareShareShareShareShare
? Want to work with us? CryptoSlate is hiring for a handful of positions!

Hong Kong’s Securities and Futures Commission (SFC) recently published an advisory paper that recognized NFTs as “collective investment schemes” rather than collectibles.

The recognition brings NFTs under the SFC’s jurisdiction. The regulator considers NFTs highly risky investments that require a specific type of license.

The letter recognized the nature of NFTs and their current trajectory to become an investment tool similar to securities. The letter stated:

“The SFC has recently noted NFTs […] structured in a form similar to “securities” […], or in particular, interests in a ‘collective investment scheme’ (CIS)”

This shift towards becoming an investment tool subjected NFTs under the SFC’s jurisdiction. With the new approach, for any NFT that constitutes an interest in a CIS, marketing, or distributing, NFT requires specific SFC licensing.

Collective investment scheme

SFC defines collective investment schemes as schemes that involve an arrangement in respect of property managed as a whole; the participants don’t have any control over the management of the property and participate in seeking financial returns.

By this definition, all NFT collections released in Hong Kong or target Hong Kong investors fall under the definition of CIS and, therefore, will require licensing from now on.

Hong Kong regulatory framework

The SFC and the Hong Kong Monetary Authority (HKMA) jointly issued the 2022 Crypto Regulation Circular on January 28, 2022. The Circular includes a definition of virtual assets and addresses issues around virtual-asset-related products.

Virtual asset products include all assets that either have an investment objective, derive their value from virtual assets,  or replicate investment returns that correspond to that of virtual assets.

The Circular also includes detailed guidance for organizations who plan on distributing or dealing with virtual assets. Each business must obtain a specific license depending on its target customer segment, whether it is professional investors or private clients.

Risks of NFTs

SFC considers NFTs as a virtual asset-related product, as they replicate investment returns that correspond to that of virtual assets.

With that, however, SFC still considers NFTs as particularly risky. The recent letter warns NFT investors as they are prone to losing revenue due to illiquid secondary markets, price volatility, opaque pricing, hacking, and fraud.

Posted In: NFTs, Regulation

Get an Edge on the Crypto Market ?

Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits

Credit: Source link

Related articles

Brian Armstrong's 2024 Bitcoin Price Prediction: Get Ready for the … – Coinpedia Fintech News

Brian Armstrong's 2024 Bitcoin Price Prediction: Get Ready for the … – Coinpedia Fintech News

October 1, 2023
Who Will Drive the Next Crypto Cycle? Alex Krüger Has the Answer – CryptoGlobe

Who Will Drive the Next Crypto Cycle? Alex Krüger Has the Answer – CryptoGlobe

October 1, 2023
ShareTweetSendPinShare
Previous Post

Director of Listed Chinese Company Embezzles $8 Million, Uses Funds to Purchase Bitcoin Mining Rigs – Regulation Bitcoin News

Next Post

Amid crypto turmoil, senators propose sweeping oversight

Related Posts

Brian Armstrong's 2024 Bitcoin Price Prediction: Get Ready for the … – Coinpedia Fintech News

Brian Armstrong's 2024 Bitcoin Price Prediction: Get Ready for the … – Coinpedia Fintech News

October 1, 2023

Brian Armstrong's 2024 Bitcoin Price Prediction: Get Ready for the ...  Coinpedia Fintech News Credit: Source link

Who Will Drive the Next Crypto Cycle? Alex Krüger Has the Answer – CryptoGlobe

Who Will Drive the Next Crypto Cycle? Alex Krüger Has the Answer – CryptoGlobe

October 1, 2023

Who Will Drive the Next Crypto Cycle? Alex Krüger Has the Answer  CryptoGlobe Credit: Source link

Ethereum Supply Is Starting to Grow Again as Gas Prices Plummet – Decrypt

Ethereum Supply Is Starting to Grow Again as Gas Prices Plummet – Decrypt

September 30, 2023

Ethereum Supply Is Starting to Grow Again as Gas Prices Plummet  Decrypt Credit: Source link

This Week in Coins: ETF Hype Pumps Ethereum and Bitcoin as Chainlink and Bitcoin Cash Surge – Decrypt

This Week in Coins: ETF Hype Pumps Ethereum and Bitcoin as Chainlink and Bitcoin Cash Surge – Decrypt

September 30, 2023

This Week in Coins: ETF Hype Pumps Ethereum and Bitcoin as Chainlink and Bitcoin Cash Surge  Decrypt Credit: Source link

Another Crypto Offering Bites the Dust: Industry Response to Chase … – The Fintech Times

Another Crypto Offering Bites the Dust: Industry Response to Chase … – The Fintech Times

September 30, 2023

Another Crypto Offering Bites the Dust: Industry Response to Chase ...  The Fintech Times Credit: Source link

Load More
Next Post
Amid crypto turmoil, senators propose sweeping oversight

Amid crypto turmoil, senators propose sweeping oversight

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Mastermind Behind Massive Crypto Ponzi Scheme AirBit Club Receives 12-Year Prison Sentence

Mastermind Behind Massive Crypto Ponzi Scheme AirBit Club Receives 12-Year Prison Sentence

September 27, 2023
Digital asset investments see outflows for sixth successive week

Digital asset investments see outflows for sixth successive week

September 25, 2023
Texans Can Settle Solar Panel Bills in SHIB From Sept 2023

Texans Can Settle Solar Panel Bills in SHIB From Sept 2023

September 27, 2023
MicroStrategy adds to Bitcoin stockpile, bringing value of holdings to $4.6B

MicroStrategy adds to Bitcoin stockpile, bringing value of holdings to $4.6B

September 25, 2023
VanEck Announces Launch of Ethereum Futures ETF (EFUT)

VanEck Announces Launch of Ethereum Futures ETF (EFUT)

September 29, 2023

About Us

We provide the latest crypto news, trading tools, and up-to-date education to students and traders all over the world.

ENROLL FOR FREE

Latest Crypto Headlines

  • Brian Armstrong's 2024 Bitcoin Price Prediction: Get Ready for the … – Coinpedia Fintech News
  • Blockchain Technology Powers Brazil’s National Identity Card Issuance
  • ADA’s Path to $12 in 2025
  • Who Will Drive the Next Crypto Cycle? Alex Krüger Has the Answer – CryptoGlobe
  • 13% Rally Driven By Fresh Demand
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
    • Blockchain
    • Regulation
    • Trading
  • Learn Crypto For Free
  • DipSnyper Bot
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2022 - OnlineCryptoCollege.com - All rights reserved!

No Result
View All Result
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
    • Blockchain
    • Regulation
    • Trading
  • Learn Crypto For Free
  • DipSnyper Bot

© 2018 JNews by Jegtheme.

  • bitcoinBitcoin(BTC)$27,167.000.81%
  • ethereumEthereum(ETH)$1,686.650.54%
  • USDEXUSDEX(USDEX)$1.07-0.53%
  • tetherTether(USDT)$1.000.01%
  • binancecoinBNB(BNB)$215.920.50%
  • rippleXRP(XRP)$0.520.78%
  • usd-coinUSDC(USDC)$1.000.03%
  • staked-etherLido Staked Ether(STETH)$1,686.180.57%
  • solanaSolana(SOL)$23.1113.53%
  • cardanoCardano(ADA)$0.2615654.39%
  • dogecoinDogecoin(DOGE)$0.0626841.37%
  • tronTRON(TRX)$0.0889300.23%
  • ToncoinToncoin(TON)$2.10-2.33%
  • Wrapped stETHWrapped stETH(WSTETH)$1,864.220.34%
  • polkadotPolkadot(DOT)$4.192.46%
  • matic-networkPolygon(MATIC)$0.565.51%
  • litecoinLitecoin(LTC)$67.412.66%
  • bitcoin-cashBitcoin Cash(BCH)$236.980.32%
  • chainlinkChainlink(LINK)$8.11-0.69%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$27,225.000.88%
  • shiba-inuShiba Inu(SHIB)$0.0000071.52%
  • daiDai(DAI)$1.000.01%
  • true-usdTrueUSD(TUSD)$1.000.02%
  • uniswapUniswap(UNI)$4.552.48%
  • avalanche-2Avalanche(AVAX)$9.645.19%
  • leo-tokenLEO Token(LEO)$3.66-0.18%
  • stellarStellar(XLM)$0.1136951.10%
  • moneroMonero(XMR)$147.460.66%
  • okbOKB(OKB)$43.280.52%
  • Aerarium FiAerarium Fi(AERA)$7.15-13.10%
  • ethereum-classicEthereum Classic(ETC)$16.442.48%
  • binance-usdBUSD(BUSD)$1.000.00%
  • BSCEXBSCEX(BSCX)$237.310.49%
  • cosmosCosmos Hub(ATOM)$7.291.23%
  • hedera-hashgraphHedera(HBAR)$0.0500250.55%
  • filecoinFilecoin(FIL)$3.402.38%
  • lido-daoLido DAO(LDO)$1.69-0.16%
  • GGTKNGGTKN(GGTKN)$0.1121310.76%
  • internet-computerInternet Computer(ICP)$3.232.12%
  • makerMaker(MKR)$1,550.764.62%
  • crypto-com-chainCronos(CRO)$0.0511880.86%
  • quant-networkQuant(QNT)$91.240.78%
  • AptosAptos(APT)$5.542.82%
  • MantleMantle(MNT)$0.396169-0.72%
  • vechainVeChain(VET)$0.017394-0.40%
  • ArbitrumArbitrum(ARB)$0.955.19%
  • nearNEAR Protocol(NEAR)$1.151.73%
  • optimismOptimism(OP)$1.384.63%
  • KaspaKaspa(KAS)$0.0498993.05%
  • aaveAave(AAVE)$69.082.74%