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Hong Kong watchdog outlines plans to regulate cryptocurrency industry

Hong Kong’s securities watchdog has announced plans to regulate cryptocurrency exchanges and funds that invest in digital assets to protect investors.

The Securities and Futures Commission said it is considering regulating cryptocurrency exchanges and crypto portfolio managers through its “sandbox” or by applying existing regulations adapted to the risks associated with digital assets.

Under current rules, trading of cryptocurrencies is not regulated by the SFC unless the digital assets are classed as securities or futures contracts.

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