According to the Hong Kong Securities and Futures Commission (SFC), some unlicensed virtual asset trading platforms are falsely claiming that they have applied for a license with the agency.
According to SCMP, the securities regulator of the city of Hong Kong (China) said that such fraudulent statements are intended to entice others to trade virtual assets, which is an act that can be charged. Criminal.
In October 2022, Hong Kong launched its ambition to become a global cryptocurrency hub and quickly introduced regulations allowing licensed centralized cryptocurrency exchanges to provide services to retail customers, requiring a license Licensing covers many areas such as user referrals, asset custody, cybersecurity, and corporate governance.
But some platforms, now serving retail users during the transition period, are offering new regulatory infringing services and products, such as crypto derivatives. The SFC emphasizes that these platforms are taking regulation lightly and advises people to beware of false claims.
Investors who trade on unregulated platforms can face the risk of losing their entire investments if they stop working, crash, or get hacked.
Two of the world’s largest cryptocurrency exchanges, OKX and Huobi, have publicly pledged to apply for a license in Hong Kong. In addition, two crypto companies, HashKey and OSL, have received licenses under the SFC’s new regime, which allows the platforms to provide a variety of services to the people of Hong Kong. Licensing regime requires crypto exchanges and service providers to ensure secure custody of assets and follow Know Your Customer, anti-money laundering and anti-funding process rules terrorism
The agency stated that it will closely monitor the activities of cryptocurrency exchanges and related service providers during the transition period. In addition, Hong Kong officials also pledged to have enough safeguards in place to avoid crises that the crypto industry saw last year, such as the collapse of the FTX exchange.