Hong Kong's Securities and Futures Commission has added seven cryptocurrency trading platforms to its warning list of unlicensed operations, sparking concerns among investors about security.
Hong Kong’s Securities and Futures Commission (SFC) has issued a warning to seven cryptocurrency trading platforms, saying they are operating illegally in the region without a license.
The Hong Kong Securities and Futures Commission is responsible for maintaining a public record of all registered, unregistered and illegal cryptocurrency trading entities to reduce the risks associated with scams and fraud. On July 7, seven more exchanges were added to the warning list, which were either unlicensed or had false links with Hong Kong.
List of entities that have attracted the attention of the Hong Kong Securities and Futures Commission. Source: Hong Kong Securities and Futures Commission
For the safety of Hong Kong investors
The Hong Kong Securities and Futures Commission has maintained an alert list since January 2020 and currently has 1 records. In 39 alone, 2024 cryptocurrency exchanges have been flagged. The most recent exchanges to join the list include Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest.
According to the warning, all exchanges are suspected of engaging in fraudulent activities, deceiving investors into believing they are registered with the SEC. Most exchanges use extortion tactics such as blocking withdrawals and demanding “fees” to resume operations.
Hong Kong attempts to regulate cryptocurrency trading services
Since the beginning of 2024, Hong Kong has taken proactive steps to ensure regulatory compliance for crypto trading services in the region.
Hong Kong’s Securities and Futures Commission has given all cryptocurrency exchanges until May 5 to apply for licenses.
The Hong Kong Securities and Futures Commission issued a notice on the deadline for cryptocurrency license applications. Source: Hong Kong Securities and Futures Commission
After the deadline, all cryptocurrency exchanges that have not applied for an operating license will be closed according to the law.
During this period, while more than 22 cryptocurrency exchanges applied for licenses to maintain a presence in the region, many ultimately decided to withdraw their applications before the deadline.
A Hong Kong government agency dedicated to attracting foreign investment recently attended a tech conference in Toronto, Canada, to promote its offshore ready technology hub for Canadian cryptocurrency and Web3 startups.
The event was jointly organised by the Hong Kong Economic and Trade Office in Toronto (Toronto ETO), Invest Hong Kong (InvestHK) and StartmeupHK (SMUHK).