The Securities and Futures Commission of Hong Kong (SFC) recently issued alerts against seven cryptocurrency trading platforms for operating without the required licenses. This move, announced on July 5, is part of the SFC’s ongoing efforts to protect investors from scams and fraudulent activities.
The Hong Kong SFC maintains a public record of all registered, unregistered, and illegal crypto trading entities to reduce risks associated with scams and fraud. The Alert List, which identifies exchanges that are either unlicensed or falsely claim association with Hong Kong, saw the addition of Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest.
These platforms are accused of engaging in fraudulent practices, such as deceiving investors into believing they were registered with the SFC. Many of these exchanges reportedly used extortion tactics, including blocking withdrawals and demanding fees to resume operations.
Since its inception in January 2020, the Alert List has grown to 39 entries, with 28 cryptocurrency exchanges flagged in 2024 alone. The recent additions underscore the persistent issue of unlicensed operations in the crypto market.
To ensure investor safety, the SFC has been proactive in enforcing regulatory compliance for crypto trading services. Earlier in 2024, the SFC required all crypto exchanges to apply for a license by May 31. Those that failed to meet this deadline were legally obligated to shut down.
During this period, over 22 cryptocurrency exchanges applied for licenses to continue their operations in Hong Kong. However, several decided to withdraw their applications just before the deadline, highlighting the difficulties in meeting regulatory standards.
In a bid to attract foreign investment and showcase its regulatory environment, Hong Kong government entities recently participated in a tech conference in Toronto, Canada. The event aimed to promote Hong Kong’s offshore technology hub for Canadian crypto and Web3 startups. The conference was organized in collaboration with the Hong Kong Economic and Trade Office in Toronto, Invest Hong Kong, and StartmeupHK.
Hong Kong’s stringent regulatory measures and efforts to draw foreign investments reflect its dedication to creating a secure and compliant environment for digital assets. This approach aims to position Hong Kong as a leading hub for technological innovation while safeguarding the interests of investors.
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