BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
FOLLOW
BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
BlockNews

HK Securities and Futures Commission Warns Investors about NFTs

by BlockNews.com Team
June 9, 2022
in NFT, Politics
A A
HK Securities and Futures Commission Warns Investors about NFTs

Hong Kong doesn't like NFTs

1
SHARES
Share on TwitterShare on Reddit

The Hong Kong Securities and Futures Commission (SFC) recently issued a warning to investors about the risks of NFTs and the consequences they carry for those that do not do their research.

While an NFT is a genuine digital representation of a collectible, the activities connected with it are not regulated by the SFC, according to the NFT risk warning.

SFC Elaborates on NFT Security Risks

According to their official risk warning, “As with other virtual assets, NFTs are exposed to heightened risks, including illiquid secondary markets, volatility, opaque pricing, hacking, and fraud. Investors should be mindful of these risks, and if they cannot fully understand them and bear the potential losses, they should not invest in NFTs.”

“The majority of NFTs observed by the SFC are intended to represent a unique copy of an underlying asset such as a digital image, artwork, music or video.” 

However, the SFC’s primary focus is on the securitization of NFTs and how they can make it safer for investors to know that their bought digital assets are not scams.

Those under their jurisdiction include financial holdings and digital collectibles. 

SFC Requests Owners to Have a License

Organizations that conduct certain activities in Hong Kong must obtain a license from the SFC before contacting residents.

These activities include dealing in securities, advising on securities and providing automated trading services. The SFC said it will “closely monitor” the NFT market and may take further actions if necessary.

This is not the first time that regulators have issued warnings about NFTs.

In February, the US Securities and Exchange Commission (SEC) warned investors that NFTs could be “unregistered securities” and that some platforms trading them may not follow US securities laws.

The Canadian Securities Administrators (CSA) also published a notice cautioning investors about the risks of investing in NFTs, including their lack of regulation.

NFTs have exploded in popularity, with major companies and celebrities getting involved in the space.

Tags: ChinaHong KongNFT
TweetShareShare

DON'T MISS THESE! HOT OFF THE PRESS

President Trump Proposes MASSIVE Tariff Reduction Ahead of China Negotiations
Finance

President Trump Proposes MASSIVE Tariff Reduction Ahead of China Negotiations

May 9, 2025
Doodles Launches DOOD Token on Solana with Major Airdrop: Here is What You Missed
Crypto

Doodles Launches DOOD Token on Solana with Major Airdrop: Here is What You Missed

May 9, 2025
Everything You Need to Know About $DOOD: A New Era for Doodles and Its Ecosystem
Crypto

Everything You Need to Know About $DOOD: A New Era for Doodles and Its Ecosystem

May 9, 2025
Trump Say Upcoming U.S.-China Trade Negotiations May Lower 145% Tariffs: Here is Why
Finance

Trump Say Upcoming U.S.-China Trade Negotiations May Lower 145% Tariffs: Here is Why

May 8, 2025
Markets Soar as Trump Announces Major US-UK Trade Deal and Advises to “Buy Stocks Now”
Finance

Markets Soar as Trump Announces Major US-UK Trade Deal and Advises to “Buy Stocks Now”

May 8, 2025
Trump Compares Powell Talks to ‘Talking to a Wall’ as Fed Refuses Rate Cuts
Finance

Trump Compares Powell Talks to ‘Talking to a Wall’ as Fed Refuses Rate Cuts

May 8, 2025
Load More

Related News

HBAR Price Rebounds, Hits Highest Point Since March

HBAR Price Rebounds, Hits Highest Point Since March

May 10, 2025
Memecoins Steal the Spotlight as Ethereum Surges: PEPE and BONK Lead the Charge (Still Early?)

Memecoins Steal the Spotlight as Ethereum Surges: PEPE and BONK Lead the Charge (Still Early?)

May 10, 2025
Sui (SUI) Gains 10% Amid Market Optimism — But Is a Selloff Looming?

Sui (SUI) Gains 10% Amid Market Optimism — But Is a Selloff Looming?

May 10, 2025
TRON’s USDT Dominance Grows as Whales Tighten Grip

TRON’s USDT Dominance Grows as Whales Tighten Grip

May 10, 2025
Cardano ADA Just Broke a KEY Resistance Level: Here is the Next Price Target You Need to Watch

Cardano ADA Just Broke a KEY Resistance Level: Here is the Next Price Target You Need to Watch

May 10, 2025
Discord Twitter Youtube TikTok Instagram

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Newsletter
  • Advertise
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano China Coinbase crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin Meme Coin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology twitter US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • Home
  • Crypto
  • Memecoins
  • Technology
  • Politics
  • Finance
  • NFT
  • DeFi
  • Opinion

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.