Hong Kong Launches Crypto Public Education Campaign. Should the United States Do the Same?

On Jan. 29, two Hong Kong market authorities, the Financial Services and Treasury Bureau (FSTB) and the Investor Education Centre (IEC) joined together to launch a massive educational campaign on cryptocurrencies on the Chinese island.

The campaign will give emphasis on the risks associated with initial coin offering (ICO) investments and cryptocurrency trading.

The campaign will advertise across all forms of media. They will even place ads in public places, such as metro stations, in print, and over the in a drive to reach even the most technically inept of its citizens.

“The increase in media coverage and hype around ICOs and ‘cryptocurrencies,’ such as Bitcoin, has aroused public interest. However, the public might use these as speculative tools without a full understanding of their nature and potential risks,” FSTB Secretary Joseph Chan said.

“Through this series of public education initiatives, the government aims to provide the public with a correct and comprehensive understanding of ICOs and ‘cryptocurrencies,’ so that they can thoroughly assess the risks before making transactions or investment decisions.”

The IEC has made ICO and cryptocurrency-related resources available to the public on their website, called the Chin Family.

Chairman of the IEC Dr. Kelvin Wong also had negative comments about crypto.

“ICOs and ‘cryptocurrencies’ are high-risk products that are not suitable for everyone. ‘Cryptocurrencies’ are not actual currencies, but a type of virtual commodity,” Wong said. “They are not backed by any physical commodity nor by the issuers and are not recognized as a medium of payment or electronic currency.

“‘Cryptocurrencies’ are highly speculative and are associated with various kinds of risks. Their prices may be susceptible to significant fluctuations due to speculative activities. Investors may suffer significant monetary losses as a result of the volatile prices.”

Chinese hostility

Authorities in mainland China continue to be hostile towards cryptocurrency investments. However, the situation is different in the independently governed Hong Kong.

Hong Kong is home to some of the world’s largest cryptocurrency exchanges. Many left mainland China to take shelter themselves on the autonomous island in order to rebuild their businesses after a government crackdown.

The campaign follows recent warnings from the U.S. Securities and Exchange Commission (SEC), which said that tokens issued through ICOs could be regulated as securities. The financial regulator also stated last month that only licensed firms are allowed to offer Bitcoin futures and other cryptocurrency instruments.

So far, there are no previews of the Hong Kong advertisements, but they will begin this week. A TV campaign is scheduled for March and it will be joined by radio ads and videos on social media.

Test Your Financial Advisor’s Loyalty with These Simple Questions

You have a financial advisor in order to make certain you have budgeted your money correctly, have planned for future financial needs, and, in some cases, to turn some of

Sell Puts the Smart Way: Get Out Before Expiration Nears

Selling put options can be a great way to help increase the value of your portfolio without taking on too much risk. At its core, a put sale allows investors

refinancing

4 Pros and 1 Con of Refinancing Your Home

Two years ago the 30-year fixed mortgage rate was 4.6%. Today it is 2.9%. If your mortgage is in the high threes, you should consider refinancing. Refinancing would lower your

Easy Finance Tip: How to Calculate Your Net Worth

To calculate your net worth, just subtract your liabilities (what you owe) from your assets (what you own). While the equation is simple, it's important to get a snapshot of

Just a Few Bad Market Years Can Slam Your Retirement: How to Cut Your Risk

I believe one very underappreciated risk for investors preparing for retirement is the concept of “sequence of returns.” Sequence of return risk is the danger that the timing of withdrawals

Tai Chi Can Benefits for Those with Chronic Diseases

The Chinese martial art of tai chi can be beneficial to people suffering with chronic illnesses, according to research in the British Journal of Sports Medicine (2015), conducted by Dr.

Two Measures of Options Volatility That Matter

Most people often have a notion of what volatility means. They understand, at least conceptually, that it has to do with data of situations that vary over time. Weather is

3 Financial Habits to Adopt Before You Retire

Nobody wants to work until the day they die. We all want to get to a point where we can simply sit down, relax, and enjoy life.  Consider adopting these

11 Ways Eating Limes Can Protect Your Eyes, Heart, Joints and More

Most of us hear lime and think Corona beer or ceviche. Surprisingly, this little bright green fruit has many excellent benefits for your health and wellness. Limes are often overlooked

Why You Should Take Social Security Early and Invest

Social Security is a government program, so it is unnecessarily complicated. Working or retired? Married or divorced or both? Disabled? Private or public employer? All these factors affect your Social

5 Benefits of Opening a Health Savings Account

The tax advantages of a healthcare savings account are like those of a traditional IRA, a Roth IRA, or a 529 college savings plan. The account can be used like

A Simple, Easy Way to Lower Your Blood Pressure

According to the American Diabetes Association, one in three Americans have high blood pressure, and this condition may lead to other chronic diseases like heart disease and diabetes. There are