The Currency Analytics
By David Drake
The cryptocurrency industry has achieved significant milestones in recent years as it strives to go mainstream.
The industry achieved tremendous growth when it was operating as a free market, true to its decentralised values.
The challenge, therefore, will be striking a balance between regulation and the decentralised nature of the industry without stifling innovation.
One regulation development initiative that has raised interest in the industry has been started by the Hong Kong Securities and Futures Commission (SFC).
In a press release last month, the SFC highlighted the need for a more robust cryptocurrency regulatory framework in the country.
It is important to point out the two regulatory aspects in this country. Currently SFC’s mandate covers assets that meet the requirements of securities or future contracts.
At its core, this development of a regulatory framework in Hong Kong is largely viewed as good for the industry because it shows the SFC realizes the value in digital currencies.
Depending on the type of framework the SFC puts in place, Hong Kong’s cryptocurrency will either soar or take a deep.
Disclaimer: David Drake is on the advisory board for most of the firms mentioned or quoted in this article.