{"id":64991,"date":"2022-06-09T09:01:11","date_gmt":"2022-06-09T09:01:11","guid":{"rendered":"https:\/\/www.cryptocabaret.com\/?p=64991"},"modified":"2022-06-09T09:01:11","modified_gmt":"2022-06-09T09:01:11","slug":"hong-kong-regulator-reminds-investors-of-risks-associated-with-nfts","status":"publish","type":"post","link":"https:\/\/www.cryptocabaret.com\/?p=64991","title":{"rendered":"Hong Kong Regulator Reminds Investors of Risks Associated With NFTs"},"content":{"rendered":"<p><img decoding=\"async\" width=\"696\" height=\"392\" src=\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2022\/06\/shutterstock_1729271581.jpg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" loading=\"lazy\"><\/p>\n<p><strong>Hong Kong\u2019s 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. <\/strong><\/p>\n<h2>NFTs \u2018Straddle the Line Between Collectibles and Financial Assets\u2019<\/h2>\n<p>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.<\/p>\n<p>According to a <a href=\"https:\/\/baijiahao.baidu.com\/s?id=1734881157589216071&amp;wfr=spider&amp;for=pc\">report<\/a> by Interface News, the Hong Kong Securities Regulatory Commission (HKSRC) said some of these risks include a lack of liquidity in the secondary market, volatile prices, a lack of transparency in the pricing of NFTs, and the risk of hacking.<\/p>\n<\/p>\n<p>The regulator\u2019s warning comes after the HKSRC said it had observed that some NFTs have unique qualities. Explaining this, the report said: \u201csome NFTs straddle the line between collectibles and financial assets, such as subdivision or homogeneity with structures similar to securities or, especially, interests under \u2018collective investment schemes\u2019 tokenized NFTs.\u201d<\/p>\n<p>The report went on to state that if an NFT is deemed to \u201cconstitute an interest under a collective investment scheme,\u201d then any marketing or distribution of such may constitute a \u201cregulated activity.\u201d According to the regulator, any person carrying out any such regulated activity must be licensed.<\/p>\n<p><em><strong>What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n<p class=\"wpematico_credit\"><small>Powered by <a href=\"http:\/\/www.wpematico.com\" target=\"_blank\" rel=\"noopener\">WPeMatico<\/a><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hong Kong\u2019s 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 \u2018Straddle the Line Between Collectibles and Financial Assets\u2019 A Hong Kong regulator has said NFTs face risks that [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":64992,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[309],"tags":[],"class_list":["post-64991","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/posts\/64991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=64991"}],"version-history":[{"count":0,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/posts\/64991\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/media\/64992"}],"wp:attachment":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=64991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=64991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=64991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}