Hong Kong’s SFC Warns Towards Unlicensed Crypto Platforms

Hong Kong’s Securities and Futures Fee (SFC) issued a warning addressing traders in opposition to crypto platforms “participating in improper practices.”

On Monday, Hong Kong regulators issued a warning to unlicensed crypto platforms “participating in improper practices.” The Securities and Futures Fee (SFC) stated some platforms are falsely claiming to have utilized for registration. HashKey and OSL are the one two licensed exchanges within the metropolis.  

SFC Takes a “Dim View” of Non-Compliance

The SFC warned the unlicensed crypto platform advising traders to beware of those operations buying and selling with out the mandatory registration. In a press launch, the regulator stated:

“The Securities and Futures Fee (SFC) has noticed some unlicensed digital asset buying and selling platforms (VATPs) participating in improper practices. This assertion warns VATPs of the potential authorized and regulatory penalties of those improper practices and reminds traders to be cautious of the dangers of buying and selling digital belongings on unregulated VATPs.”

The regulator stated it turned conscious of exchanges conducting enterprise after falsely claiming to have utilized to it for registration. The SFC famous such false claims intention to “give the general public a false sense of assurance” with the purpose of “inducing one other particular person to commerce in digital belongings” and are an offence beneath Hong Kong’s Anti-Cash Laundering and Counter-Terrorist Financing Ordinance.

Hong Kong is doing all the things attainable to manage the trade and introduce a brand new licensing regime for digital asset service suppliers. On 1 June, the SFC introduced a new regulatory framework for platforms participating in buying and selling actions. Beneath the laws, such suppliers can apply to the SFC for licenses to legitimise their operations. Hong Kong’s method to regulation goals to offer a structured setting for traders and merchants. The Hashkey Exchange just lately introduced it obtained a license from the SFC, making it the primary cryptocurrency platform allowed to supply companies to retail customers.

The SFC additional warned the general public that some unlicensed platforms proceed to launch new services and products beneath current entities that don’t adjust to its regulatory necessities. The Fee defined:

“For instance, they might, beneath new or current entities, launch sure digital belongings for buying and selling by retail shoppers, buying and selling companies in digital asset derivatives, or preparations involving digital belongings akin to digital asset ‘deposits,’ ‘financial savings’ or ‘earnings’ which aren’t allowed beneath the brand new regime.”

The regulator suggested traders buying and selling on unregulated exchanges that they may danger “shedding their whole funding” held on that change ought to they discontinue their operations, collapse, or are hacked.

Disclaimer: This text is supplied for informational functions solely. It isn’t supplied or meant for use as authorized, tax, funding, monetary, or different recommendation.

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