Secretary for financial services and Treasury of Hong Kong said that mining is regulated by local commercial law and related illegal activities will be prosecuted according to law.
He said this in a written reply to the Legislative Council of Hong Kong in response to the requested information about risks and fraud related to cryptocurrency and mining. In addition, the Council was interested in whether mining is regulated in accordance with the decree on trade descriptions (TDO) – the bill adopted in 2012, and providing for penalties for fraudulent trade practices in Hong Kong.
Secretary James Lau (James Lau) said that the sale of mining equipment and any other products related to virtual assets, subject to the TDO. The fraudulent actions that he mentions in this regard include false trade descriptions, misleading, and aggressive commercial actions and improper payments.
According to Lau, illegal mining cryptocurrency may be punished by a fine of $500 000 or to imprisonment for a term of five years. The Secretary also mentioned one specific case of fraud, when the Hong Kong police arrested three people who allegedly lured a 20 victims ‘ investments amounting to more than 3.7 million Hong Kong dollars (about $471 400).
Earlier, the Hong Kong regulator has banned investment in STO investors with a portfolio less than $1 million
Message In Hong Kong for illegal mining will be put in jail appeared first on crypto.by.