Securities and Futures Commission, SFC, the financial regulator of Hong Kong, made the publication of the future of Bitcoin and financial investment products that are related to cryptocurrencies. She recalled that only regulated firms can offer such products in the country, specifying that it is a “type 2 regulated activity” under the Securities and Futures Ordinance legislation.
The notice was issued after the first day of trading in the first future contracts on Bitcoin by the signing of Chicago CBOE, which took place in the early hours of Tuesday and the launch of CME Group futures.
The future on Bitcoin have been issued or will be issued soon by recognized companies in the United States that are regulated by the U.S. Commodity Futures Trading Commission and approved by the Securities and Futures Commission (SFC) to provide automated trading services, explained the note published by the company.
Moreover, according to what the regulator reminds us, investors in the capital of Japan can negotiate the future of Bitcoin through intermediaries in different markets. The industry is reminded that it is necessary for one of the partners to have an appropriate license with SFC should it provide other types of services related to the future on Bitcoin.
The SFC also reminds people that there are other ways of investing in financial products on Bitcoin in the country, including options on the cryptocurrencies. Not having a license to provide such services would turn in an offence under the SFO.
On the other hand, the SFC warned that products regarding the Bitcoin futures of the platforms that have not been covered are or aren’t future contracts under the SFO have to be verified. He also reminded investors of the potential risk of trading in cryptocurrencies including an insufficient liquidity of assets and the price volatility.
The first day of trading in futures on the CBOE ended without incident, as it was planned, according to its CEO. The session saw the price of Bitcoin above 17,000 dollars, a new all-time high within hours of the start of the session.
Articles in press pointed out that trading was easing throughout the session, but they jumped alarms twice due to volatility, as iForex expected. However, from CBOE, they tinged that it was about two breaks due to volatility in the prices of assets and not by incidences of the system.
The future contract on Bitcoin due in January 2018 is priced at $17.780, 4.13% less, after marking a maximum of 18,600 dollars and a minimum of 17,400 dollars, with a volume of 416 contracts. Meanwhile, the underlying, the Bitcoin loses this morning a 2.16% and priced in the 16.787 dollars, after mark intraday on the 16.787 and a minimum of 16.259 dollars.