One way do deal with “protecting” investors is to enforce an automated mini test to gauge their respective risk profile. That’s already happening at HSBC where from time to time I have to fill out some questionnaire to be reminded of my level of risk appetite.
It’s the same if you are an options security trader or doing crypto futures on Binance.
It’s easily implemented into trading interfaces and would give all platforms a way to not only legally of the hook but also fulfill a mission of reminding people of investing mindfully.
I sincerely hope that that the government is using this consultation to just reign in unlicensed players. I don’t want to wake up in a nanny state where it’s ok to throw away your money at overpriced MPFs or casinos ( next door) but being treated as too dumb to make my own decisions.
i already had a fight with HSBC with regards to not being allowed to purchase stocks that derive their income from crypto related investments. If this continues I might also move my investments elsewhere.
This discussion around the government consultation is really not about whether crypto , precious metals, gem stones or meme stocks are good investments but to maintain pure and simple our freedom of choice that’s not determined by the level of money in the bank and not patronized by the assessment of people that want to keep the cake for themselves and are afraid of the new.
This resonates with me a lot
The people who need protection are not the few diamond hands apes HODLing a bit of crypto or GME stocks, but the 85% of the population who wouldn't even know where to buy those things and are instead having their pension wealth eroded every day by shitty MPF rates on bad funds, dodgy insurance-pension products sold by jackals, and the like
I can understand making these rules for derivatives, but you don’t need to be a professional investor to buy FX or ETFs so why is crypto any different?
Apple pay to support crypto...
https://www.coindesk.com/apple-is-looking-for-crypto-experience-in-alternative-payments-job-post
i am all for freedom of actions.. but like what FrancisX says, do you remember all the banners and protests by the investors that lost money at HSBC HQ for the 5 or 7 years after 2008 ? That's when the people that lost money wants HKMA to control what can be offer to investors and what cannot... It will never be easy.. if you are in wealth management industry you will know how much contradiction there are in such issues.. And all the processes and convoluted procedures to get thru any investments... you can never win all..
See we can all say we understand whatever we invest, but the agents/insurance/mpf sales will also convince the aunties/uncles that don't understand any of these to convince the banks/regulators that they understand these as well, just to let the agents sell those high fee products to the aunties/uncles.. So how to balance out the risk and the lawless agents ?
I think the problem now is the reality that it is an investment asset. But it wants to be viewed as a currency that can be used but is not at that level yet. But I think regulators need to start viewing it as a currency instead of an investment then these "investors" will understand what they are buying along with risks and rewards.
So if I exchange my HK$ to Bitcoin at a certain rate, but the value drops after a few months, thats not protected as an investment. I still have the same number of bitcoin and can spend the bitcoin wherever it is accepted. The risk is I may need more bitcoin to buy a certain good.
This is the same as if I exchange HK$ to Japanese Yen or Pound Sterling for example. There is a risk the exchange rate will change so it is worth less HK$ in the future. But it doesn't change the amount of Yen or Pounds I hold so I can still spend it wherever accepts it. Again there is a risk I need more Yen or Pounds to buy a certain good, but that is due to inflation.
I would hope any regulator will view crypto in this lens so that people who buy it know what they are getting in essence (a form of currency, not an investment).