2 years ago
Hong Kong’s securities regulator has warned investors to beryllium wary of risks that are associated with non-fungible tokens (NFTs). The regulator besides advised investors to see investing successful NFTs lone if they afloat recognize the risks.
NFTs ‘Straddle the Line Between Collectibles and Financial Assets’
A Hong Kong regulator has said NFTs look risks that are associated with different virtual assets and investors should not put successful these assets if they bash not afloat recognize specified risks.
According to a report by Interface News, the Hong Kong Securities Regulatory Commission (HKSRC) said immoderate of these risks see a deficiency of liquidity successful the secondary market, volatile prices, a deficiency of transparency successful the pricing of NFTs, and the hazard of hacking.
The regulator’s informing comes aft the HKSRC said it had observed that immoderate NFTs person unsocial qualities. Explaining this, the study said: “some NFTs straddle the enactment betwixt collectibles and fiscal assets, specified arsenic subdivision oregon homogeneity with structures akin to securities or, especially, interests nether ‘collective concern schemes’ tokenized NFTs.”
The study went connected to authorities that if an NFT is deemed to “constitute an involvement nether a corporate concern scheme,” past immoderate selling oregon organisation of specified whitethorn represent a “regulated activity.” According to the regulator, immoderate idiosyncratic carrying retired immoderate specified regulated enactment indispensable beryllium licensed.
What are your thoughts connected this story? Let america cognize what you deliberation successful the comments conception below.
English (US) 