Hong Kong Financial Watchdog Warns Against NFTs
Pexels.com/Jimmy Chan
Main page News, NFT, Regulations
Hot topic
9 June

The Hong Kong Securities Regulatory Commission (HKSRC) warned on Thursday that investors should be cautious when dealing with non-fungible tokens (NFTs) as digital collectibles lack liquidity in the secondary market and also suffer from price volatility.

Subscribe to our Telegram channel to get daily short digests about events that shape the crypto world

A local news outlet Interface News reported that HKSRC noted that NFTs also lack of transparency in pricing, and subject to risk of hacks or fraud.

"Investors should be aware of these risks and should not invest in these assets if they do not fully understand NFTs and suffer potential losses."

Hong Kong Cybersecurity Watchdog Names NFTs & Metaverse as Key Threats in 2022

The warning comes just a few days after Hong Kong's Securities and Futures Ordinance (SFO) and the Securities and Futures Commission (SFC) said that some NFTs have to be regulated.

The regulators claim that some digital collectibles similar in their structure to securities. Therefore, providers of these NFTs in Hong Kong are required to obtain a license from the local regulators.

Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange

Read also:
Please describe the error