The Securities and Futures Commission (SFC) of Hong Kong has sent out a cautionary note to all the unlicensed crypto platforms that are operating in the gray market and carrying out fraudulent activities. This goes for the investors as well.
As per the understanding of SFC, there are the crypto platforms that have supposedly applied for a license and, under that garb, are continuing with their malpractices. Over and above that, the warning goes out to those unregulated virtual asset trading platforms that are operating under aliases and continuing their trade in virtual assets in Hong Kong.
The SFC goes on to add that, in many cases, the digital asset trading platforms are going in for licenses that are not exactly valid and do not adhere to the latest rules and regulations as laid down by the country. Considering the fact that there currently exists only two crypto companies that have got themselves registered. One is HashKey, while the other is OSL Exchange. In their viewpoint, there are those companies that claim to have applied for a license but, in actuality, have done no such things.
So far as the Hong Kong regulators are concerned, they introduced a licensing program at the beginning of 2023. They had also taken back the ban on crypto trading so as to be portrayed as a country encouraging the crypto space. Yet, there seem to be restrictions for new entrants, as well as the old companies, to issue particular virtual assets for trading. As per the latest regulatory framework, restrictions exist for making deposits, as well as savings and earnings in virtual assets. Hong Kong’s SFC is cracking the whip on all who are not adhering to the regulations laid down.
Presently, Hong Kong is encouraging the prime banking institutions in the country to bring on board crypto companies in the form of clients. The entire focus of the country is to execute a secure banking system and make banking services available to all who require and deserve it.