Thursday 14th December 2017

Dear Reader,

NEW ARTICLE
Bitcoin: the World's first decentralised Ponzi scheme
So long as we have governments with the power to tax and spend in their own currencies, digital pseudo-currencies will never gain traction. Bitcoin and its imitators are a zero-sum game in which the sum of all fiat currency paid for it is the sum of all fiat currency received for it, excluding mining costs. The earlier participants are now cashing out the billions that newcomers are putting into this distributed Ponzi scheme. Play it for entertainment value if you want, but remember that you are purely betting on the greater stupidity of others. (14-Dec-2017)

RECENTLY ON WEBB-SITE
Submission on Capital Raisings by Listed Issuers
Webb-site responds to HKEX's consultation which, while positive, ignores several key issues and does not go far enough in others. Have your say! (24-Nov-2017)

IN OTHER NEWS
SFC fines Rakuten Securities HK Ltd HK$2m
SFC, 13-Dec-2017
For failing to segregate sufficient client money. The company was previously known as FXCM Asia Ltd. This is its second fine in 14 months.

SFC bans Abbie Yip Ka Ying, ex-BNP Paribas, for 18 months
SFC, 13-Dec-2017
For covering up a fat-finger trading error.

Enigma member Jun Yang (0397) terminates Kenny Tang Sing Hing as MD of SFC-licensed subsidiaries
Company announcement, 12-Dec-2017
This is "in light of his unsatisfactory performance that is not aligned with the Group's plans to strengthen and expand the offerings of regulated activities by the Group". But Jun Yang is keeping him as Executive Director and Vice Chairman and as a director of the subsidiaries.

Court dismisses challenge to SFC's search warrant and provision of information to CSRC
SFC, 8-Dec-2017
We attach the judgment, which provides a rare look inside the Enforcement Division of the SFC and how it investigates cases. Requests from the CSRC involved the first investigation of alleged manipulation under the Stock Connect scheme with Shanghai, for which Mr Tang Hanbo was convicted on the mainland on 2-Mar-2017 and fines totalling RMB1.2bn were imposed. Mr Tang is a HK resident. The SFC had earlier commenced investigations in separate cases in HK, and the search warrant was obtained for those, without mentioning any co-operation with the CSRC.

And much more besides...
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David M. Webb
Editor, Webb-site.com