Crypto exchange irregularities prompt regulation concerns

Pressure is building on regulators to increase oversight of cryptocurrency trading following a $15bn crash in bitcoin and irregularities at one of the world’s largest virtual trading platforms.

A recent incident at Hong Kong-based OKEx has prompted questions on how the Securities and Futures Commission can respond to trading problems in the cryptocurrencies market.

Central banks and securities watchdogs around the world are contemplating how to rein in the industry where billions of dollars worth of digital currencies are traded daily outside the purview of official oversight.

Hong Kong’s SFC said this month that it could soon allow some cryptocurrency exchanges to apply for licences — a major step that would bring some aspects of virtual asset trading under its jurisdiction. The regulator said that it “notes with concern the growing investor interest in gaining exposure to virtual assets via funds and unlicensed trading platform operators in Hong Kong”.

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