Crypto Exchange TutorialsCrypto Exchange Tutorials
    What's Hot

    The crypto industry needs a crypto capital market structure

    July 4, 2022

    Bitcoin’s inverse correlation with US dollar hits 17-month highs — what’s next for BTC?

    July 4, 2022

    Bitcoin addresses in loss hit all-time high amid $18K BTC price target

    July 4, 2022
    Facebook Twitter Instagram
    • Binance
    • OKEx
    • Hotbit
    • bybit
    Facebook Twitter Instagram
    Crypto Exchange TutorialsCrypto Exchange Tutorials
    • BitMart Tutorials
    • Gate.io Tutorials
    • OKEx Tutorials
    • Bityard Tutorials
    • FTX Tutorials
    Crypto Exchange TutorialsCrypto Exchange Tutorials
    Home » Hong Kong’s Securities and Futures Commission warn of nonfungible token risks
    Hong Kong's Securities and Futures Commission warn of nonfungible token risks
    Blog

    Hong Kong’s Securities and Futures Commission warn of nonfungible token risks

    coffeecoinoBy coffeecoinoJune 6, 2022No Comments2 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email

    On Monday, Hong Kong’s Securities and Futures Commission (SFC) released a statement warning investors about the risks of nonfungible tokens, or NFTs, which have soared in popularity in recent years. The regulatory body wrote: 

    “As with other virtual assets, NFTs are exposed to heightened risks, including illiquid secondary markets, volatility, opaque pricing, hacking and fraud. Investors should be mindful of these risks, and if they cannot fully understand them and bear the potential losses, they should not invest in NFTs.”

    However, it appears that the SFC’s specific concern lies in the securitization of NFTs. “The majority of NFTs observed by the SFC are intended to represent a unique copy of an underlying asset such as a digital image, artwork, music or video,” which do not require regulation by the SFC.

    But assets that push the boundary between collectibles and financial assets, such as fractionalized or fungible NFTs structured as securities or collective investment schemes (CIS) in NFTs, do fall under the SFC’s mandate. The solicitation of Hong Kong residents by companies engaged in these activities require the issuer to obtain a license from the SFC unless an exemption applies.

    CIS has recently gained traction as they present a plausible solution for individual investors to obtain fractional ownership of real-life collectibles that would be otherwise too cost-prohibitive for any single party. Yet, questions persist as to whether such investment structures constitute securitization.

    One recent effort launched by the Royal Museum of Fine Arts Antwerp (KMSKA) to tokenize a million-euro classic painting on the blockchain was conducted via debt securitization. The venture met regulatory requirements via the aid of blockchain entities Rubey and Tokeny.

    • #Blockchain
    • #Cryptocurrencies
    • #Hong Kong
    • #Investments
    • #Regulation
    • #NFT
    Related News
    • Blockchain Can Disrupt Higher Education Today, Global Labor Market Tomorrow
    • Web3 payment ecosystem enables one-click payment from customers to merchants
    • Crypto 401(k): Sound financial planning or gambling with the future?
    • Corporate evolution: How adoption is changing crypto company structures
    • Germany outlines favorable tax guidelines, gains on BTC and ETH sold after a year tax-free
    • Needed: A massive education project to fight hacks and scams

    #Blockchain
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    coffeecoino
    • Website

    Related Posts

    Are expiring copyrights the next goldmine for NFTs?

    July 3, 2022

    The development of blockchain industry and how to defend against attacks on DeFi

    July 3, 2022

    Crema Finance shuts liquidity protocol on Solana amid hack investigation

    July 3, 2022

    Ethereum average gas fee falls down to $1.57, the lowest since 2020

    July 3, 2022
    Add A Comment

    Leave A Reply Cancel Reply

    Top Posts

    Subscribe to Updates

    Get the latest sports news from SportsSite about soccer, football and tennis.

    Advertisement
    Demo

    coffeecoino covers fintech, blockchain and Bitcoin bringing you the latest news and analyses on the future of money.

    We're social. Connect with us:

    Facebook Twitter Instagram Pinterest YouTube
    Top Insights

    The crypto industry needs a crypto capital market structure

    July 4, 2022

    Bitcoin’s inverse correlation with US dollar hits 17-month highs — what’s next for BTC?

    July 4, 2022

    Bitcoin addresses in loss hit all-time high amid $18K BTC price target

    July 4, 2022
    Get Informed

    Subscribe to Updates

    Get the latest creative news from Cryptocurrency , bitcoin and ethereum

    Crypto Exchange Tutorials
    Facebook Twitter Instagram Pinterest
    • Binance
    • Huobi
    • CoinEx
    • BitMart
    • OKEx
    • Gate.io
    • FTX
    • Bityard
    • CoinFLEX
    • ProBit
    © 2023 coffeecoino. Designed by Nikrad Co..

    Type above and press Enter to search. Press Esc to cancel.