Cryptocurrency offerings can... also raise investor protection concerns, due to issues around volatility, transparency, valuation, custody and liquidity, as well as the use
of unregulated cryptocurrency exchanges.
As China and Morocco
outlaw unregulated cryptocurrency exchanges and other countries sweep them under the regulatory regime, the management team is applying its expertise in regulated financial services businesses to ensure the trade.io platform has proper compliance and risk management systems in place.
Some unregulated cryptocurrency exchanges are offering cryptocurrency futures contracts and other cryptocurrency - related investment products to investors in Hong Kong.
However, the present state of BTCC is that it is
an unregulated cryptocurrency exchange, just like other UK - based exchanges.
Bitcoin futures traders in Hong Kong are turning away from the autonomous territory's
unregulated cryptocurrency exchanges, flocking instead to regulated US markets.
This will surely help traders and investors to turn attention to their trading rather than getting all worried about the risks and potential complexities of dealing with
unregulated Cryptocurrency exchanges.
Recently the SEC has provided guidance for
the unregulated cryptocurrency exchanges that proliferate the Internet and for the booming initial coin offering (ICO) practice.
«If investors can not fully understand the risks of cryptocurrencies and ICOs or they are not prepared for a significant loss, they should not invest,» said Julia Leung, executive director of intermediaries at SFC. «Investors who store their fiat currencies and cryptocurrencies with
unregulated cryptocurrency exchanges should be aware of the risks of hacking and misappropriation of assets.»