{"id":12642,"date":"2022-06-09T07:17:57","date_gmt":"2022-06-09T07:17:57","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/hong-kong-regulator-reminds-investors-of-risks-associated-with-nfts-regulation-bitcoin-news\/"},"modified":"2022-06-09T07:17:57","modified_gmt":"2022-06-09T07:17:57","slug":"hong-kong-regulator-reminds-investors-of-risks-associated-with-nfts-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/hong-kong-regulator-reminds-investors-of-risks-associated-with-nfts-regulation-bitcoin-news\/","title":{"rendered":"Hong Kong Regulator Reminds Investors of Risks Associated With NFTs \u2013 Regulation Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n<\/div>\n

Hong Kong\u2019s securities regulator has warned investors to be wary of risks that are associated with non-fungible tokens (NFTs). The regulator also advised investors to consider investing in NFTs only if they fully understand the risks. <\/strong><\/p>\n

NFTs \u2018Straddle the Line Between Collectibles and Financial Assets\u2019<\/h2>\n

A Hong Kong regulator has said NFTs face risks that are associated with other virtual assets and investors should not invest in these assets if they do not fully understand such risks.<\/p>\n

According to a report<\/a> by Interface News, the Hong Kong Securities Regulatory Commission (HKSRC) said some of these risks include a lack of liquidity in the secondary market, volatile prices, a lack of transparency in the pricing of NFTs, and the risk of hacking.<\/p>\n

The regulator\u2019s warning comes after the HKSRC said it had observed that some NFTs have unique qualities. Explaining this, the report said: \u201csome NFTs straddle the line between collectibles and financial assets, such as subdivision or homogeneity with structures similar to securities or, especially, interests under \u2018collective investment schemes\u2019 tokenized NFTs.\u201d<\/p>\n

The report went on to state that if an NFT is deemed to \u201cconstitute an interest under a collective investment scheme,\u201d then any marketing or distribution of such may constitute a \u201cregulated activity.\u201d According to the regulator, any person carrying out any such regulated activity must be licensed.<\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

\n
\n<\/div>\n
\n
\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

\n
\n
\n<\/a>
\n<\/span>
\n
\n
\n
\n<\/a>
\n<\/span>
\n
\n
\n
\n<\/a>
\n<\/span>\n<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

\n

Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

\n