The Regulation of Cryptocurrency

Grok rewritten based on the chainless.hk series of the same name The original text was written at the end of 2024. Its core viewpoints — multiple overlapping regulators, privacy rights protection, the principle of “no complaint, no official investigation” (“民不举官不究”), reconstructing regulation through blockchain transparency, tiered regulation based on transparency levels, mandatory real-name disclosure for

Grok rewritten based on the chainless.hk series of the same name Since the original series was written (primarily based on 2024 observations), global cryptocurrency regulation has undergone a significant shift: from “enforcement-heavy” approaches (especially the U.S. Gensler era) toward “framework clarity + industry promotion.” Many previously criticized issues—“classification confusion,” “squeezing the gourd only for the

(Adapted by Grok based on the series of articles of the same name on chainless.hk) Core Thesis The Hong Kong Securities and Futures Commission (SFC)’s regulatory framework for cryptocurrencies suffers from serious conceptual confusion, outdated definitions, and structural mismatch, making the principle of “same business, same risk, same rules” difficult to implement in practice. This ultimately

Starting with “Same Business, Same Risks, Thus Same Rules” I. Same Business, Different Structure, Thus Different Risks Both cryptocurrency and stock trading are forms of trading, which might make them appear to be the same business and thus carry same risks. However, they are fundamentally different. While both require the same factors for trading—matching transactions,

Contradictions and Improvements in Regulation I. Need for Independent Regulatory Bodies The current cryptocurrency regulation comes from multiple agencies, necessitating a more efficient regulatory framework. Under the existing system, different regulatory agencies (such as the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Hong Kong Securities and Futures Commission (SFC)

Regulatory ideas In “The problems of cryptocurrency regulation (Part 1),” virtual currency is mentioned. Someone asked the Hong Kong Securities Regulatory Commission to use the term virtual assets. What is the relationship between the two? The concept of cryptocurrency includes securities and commodities. The government divides them into two departments for supervision. The Hong Kong

The author is located in Hong Kong, where all regulatory issues are also based. It is a series, starting with the concept. Conceptual issues The definition of cryptocurrency and virtual currency In the consultation document of the regulatory regulations of the Securities and Futures Commission on February 20, 2023, it said: “Virtual assets mostly have