Hong Kong Warns Crypto Exchanges To Apply for License by Feb. 29
Hong Kong’s Securities and Futures Fee (SFC) has issued a stern warning to crypto exchanges.
Hong Kong’s Securities and Futures Fee (SFC) has issued a stern warning to crypto exchanges to use for a digital asset buying and selling platform (VATP) license by February 29 or face closure by Could 31. The SFC’s warning got here on February 5, as Hong Kong continues its efforts to determine itself as a crypto hub whereas additionally cracking down on unlawful actions within the trade. The regulator has pledged to enhance public consciousness of crypto and funding scams to guard buyers.
So far, solely two crypto exchanges in Hong Kong have obtained approval to supply companies to retail buyers: OSL and HashKey Trade. Fourteen companies have utilized for licensing, however their purposes are nonetheless being processed. Exchanges that fail to use for a license or which are discovered to be working illegally face the prospect of being shut down.
The SFC urged buyers to test if the platforms they use have utilized for a VATP license. Exchanges that haven’t utilized for a license are suggested to shut their accounts or switch to SFC-licensed VATPs earlier than Could 31, 2024. The regulator cautioned that utilizing crypto exchanges that haven’t been authorized carries a threat, as an software doesn’t assure approval. The SFC strongly encourages buyers to commerce digital belongings solely on SFC-licensed VATPs to guard themselves.
The warning comes amid ongoing investigations into a number of platforms in Hong Kong, together with crypto trade JPEX, and 12 different platforms which are listed as suspicious on the web site.
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