Crypto Legal

Weekly Legal Digest: 19th October 2018

“Pure cash cryptocurrencies, like bitcoin, need more protection than frankly, even the oil markets, or corn and wheat”, Gary Gensler, the former chairman of the Commodity Futures Trading Commission (CFTC).

Hong Kong

Hong Kong’s Securities and Futures Commission (SFC) is planning to regulate the operating cryptocurrency trading platforms in the city to protect the investors.

“We do not think imposing a total ban on these platforms is necessarily the right approach, and it will not work in today’s internet world when trading can cross national boundaries. Even if we were to ban them, transactions can still be easily conducted via platforms in overseas markets”, outgoing chairman of SFC, Carlson Tong Ka-shing.

“We need to see if and how these platforms can be regulated to a standard that is comparable to that of a licensed trading venue, while at the same time ensuring investors interest are being protected.”

Russian Federation

The draft law “On electronic platform regulation” will be introduced to the Russian State Duma by the end of this month, as reported by the Head of the State Duma’s Committee for Financial Market Anatoly Aksakov.

The government has chosen the priority direction of the national project on the digital economy. It will be a digital government.

A quarter of the total budget financing of the digital national project is allocated for digitalization of state administration — 226.4 billion rubles until 2024.

Russian authorities plan to control the blockchain industry with the support of the Financial Action Task Force (FATF), an inter-governmental body that fights money laundering.

The decision is motivated by high risks of crypto space, and the appearance of financial pyramids.


The U.S. Securities and Exchange Commission (SEC) announced the launch of the agency’s Strategic Hub for Innovation and Financial Technology (FinHub).

The FinHub will serve as a resource for public engagement on the SEC’s FinTech-related issues and initiatives, such as distributed ledger technology (including digital assets), automated investment advice, digital marketplace financing, and artificial intelligence/machine learning. The FinHub also replaces and builds on the work of several internal working groups at the SEC that have focused on similar issues.

“The SEC is committed to working with investors and market participants on new approaches to capital formation, market structure, and financial services, with an eye toward enhancing, and in no way reducing, investor protection”, SEC Chairman Jay Clayton.

“The FinHub provides a central point of focus for our efforts to monitor and engage on innovations in the securities markets that hold promise, but which also require a flexible, prompt regulatory response to execute our mission.”

Bermuda Islands

Bermuda authorities issue first ICO license to Uulala.

“It was the start of a new era for Bermuda”, Wayne Caines, the Minister of National Security with responsibility for ICT Policy and Innovation.


Nineteen firms have been granted provisional licenses to operate crypto exchanges by the Philippine government-owned Cagayan Economic Zone Authority (CEZA).

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Published by GMT Legal

GMT Legal
GMT Legal is an International law firm providing services in crypto and blockchain industry.