On Monday, Hong Kong's Securities and Futures Commission (SFC) released a statement warning investors about the risks of nonfungible tokens, or NFTs, which have soared in popularity in recent years. The regulatory body wrote:
However, it appears that the SFC's specific concern lies in the securitization of NFTs. "The majority of NFTs observed by the SFC are intended to represent a unique copy of an underlying asset such as a digital image, artwork, music or video," which do not require regulation by the SFC.