Hong Kong’s Securities Futures Commission (SFC) recently named 7 unregulated cryptocurrency trading platforms operating illegally. The platforms are Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest. This new addition brings the total number of entries in the SFC’s Alert List to 39 since its establishment in 2020.
Hong Kong Mandates Licenses for Crypto Exchanges
In 2024 alone, the SFC noted 28 cryptocurrency exchanges. These platforms have been reported to engage in fraudulent activities and deceive investors about their SFC registration status. In particular, the SFC’s alert states that these exchanges may employ aggressive tactics such as limiting clients’ ability to make withdrawals and demanding fees for unblocking them.
To prevent these problems, Hong Kong has made it mandatory for all crypto exchanges to obtain a license by the end of May. Some exchanges that did not meet the set standards were required by law to cease operations.
Nevertheless, more than 22 exchanges requested the license, but a number of them withdrew their requests before the due date.
SFC Provides Register for Crypto Entities
The SFC wants to safeguard investors by providing a register of all registered and unregistered entities dealing in cryptocurrencies. The Alert List, introduced in January 2020, is an effective mechanism. It depicts unregulated or fraudulent transactions in their connection to Hong Kong.
Since early 2024, Hong Kong has developed measures to enhance compliance in the crypto space. The SFC’s preventive measures include publishing warnings and updating an alert list. These actions aim to minimize risks associated with cryptocurrency market scams and fraud.
Hong Kong Markets Itself as Tech Hub
On the other hand, Hong Kong governments, both the local and the central governments, are involved in marketing the region as the hub for technology, especially for Canadian crypto and Web3 companies.
A group engaged in a tech conference in Toronto, Canada, to present Hong Kong as the jurisdiction’s ready-made offshore technology hub. Toronto ETO, InvestHK, and Startmeup HK of the Hong Kong University and Association for Investment Promotion (SMUHK) co-hosted the event.
This move forms part of the Hong Kong government’s efforts to lure foreign investments and develop a healthy tech environment. Hong Kong plans to become one of the world’s fintech centers and create favorable conditions for crypto-based businesses.
Some of the initiatives that the government has devised include providing incentives and support for new and already established tech firms in the area.
The SFC’s ongoing efforts epitomize the commission’s aim of ensuring the cryptocurrency trading place is safe and free from fraudulent activities. In this way, the SFC educates the public on unlicensed entities, thus protecting investors’ interests.