Investors who buy cryptocurrencies expose themselves to high risks, financial authorities in Hong Kong warn, saying the highly volatile digital market remains a concern for policymakers.
Joseph Chan Ho-lim, Undersecretary for Financial Services and the Treasury Bureau, said at a press conference on Monday that strong interest in cryptocurrenies and initial coin offerings led authorities to fear citizens might be carried away by the frenzy and invest without knowing the risks.
“We would like to reiterate here, investing in cryptocurrencies and ICOs could be extremely risky. Cryptocurrencies are not an accepted payment medium in the city, are not subject to regulation, and entail great volatility,” said Chan.
He warned that the investment is highly speculative, and investors might incur heavy losses. As digital currency and ICO trading is online, investors are also vulnerable to hacking, Chan added.
The bureau is launching a public-education campaign, expected to start in March, which uses print, digital and broadcast media to highlight cryptocurrency risks.
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