Hong Kong Regulator Reminds Investors of Risks Associated With NFTs
Hong Kong’s 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. NFTs ‘Straddle the Line Between Collectibles and Financial Assets’ 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. According to a report by Interface News, the Hong Kong Securities....
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The regulatory agency's main concern was the rise of unregulated collective investment schemes in NFTs. On Monday, Hong Kong's Securities and Futures Commission (SFC) released a statement warning investors about the risks of nonfungible tokens, or NFTs, which have soared in popularity in recent years. The regulatory body wrote: "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....
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