Hong Kong Authorities Urge Crypto Investors to Verify Licenses
Hong Kong Authorities Urge Crypto Investors to Compare Licenses
Hong Kong’s securities regulator warned crypto traders on Monday to totally spend licensed trading platforms and to overview the station of the exchanges they’ve signed up to.
The announcement comes as the reduce-off date approaches for Hong Kong-basically based mostly virtual asset trading platforms to submit license capabilities. They must submit their capabilities by Feb. 29, or be required to pause operations by the cease of Might per chance well.
“Investors might presumably per chance per chance merely soundless take a look at the regulatory station of a VATP infrequently and in any tournament on 1 March 2024,” the Securities and Future Commission’s spy talked about.
JUST IN – HONG KONG’s The Securities and Futures Commission requires crypto exchanges to submit a license application by Feb. 29 or shut down by Might per chance well 31.
— Crypto India (@CryptooIndia) February 5, 2024
Investors with accounts on unlicensed trading platforms must shut or transfer them to SFC-licensed platforms. They were cautioned that trading on exchanges which would per chance presumably per chance per chance be soundless applicants is volatile, as their approval isn’t assured.
As of at the moment time, the roster of licensed virtual asset trading platforms in Hong Kong fully involves OSL Digital Securities and Hash Blockchain. There are 14 entities within the checklist of applicants, including names fancy OKX, HKVAX, Bybit, and DFX Labs.
SFC Indicators Investors to Unlicensed Platforms’ Fraudulent Practices
In August closing one year, the SFC warned traders relating to unlicensed cryptocurrency platforms enraged by inferior practices. This advisory applied to both traders and the unlicensed platforms themselves.
In that spy, the regulator identified that a couple of these platforms falsely claimed that they had submitted capabilities to the regulator after they had not actually adhered to rules. Some VATPs claiming license capabilities might presumably per chance per chance merely not meet criminal necessities, the SFC extra warned.
Misrepresenting themselves as licensed is a crime for crypto platforms. The SFC additionally eminent that platforms falsely declaring they are within the technique of applying for a license or claiming to acquire got one might presumably per chance per chance face penalties within the event that they later search for proper approval from the SFC.
Hong Kong’s Crypto Regulation Revamp
Hong Kong firstly put apart began to lose its crypto standing in mid-2022. This decline changed into once in total on account of considerations over its imprecise crypto rules and the emergence of possible opponents fancy Singapore and Dubai, which were both seen as more welcoming to the cryptocurrency trade.
By 2023, Hong Kong regulators supplied a licensing program and additionally lifted a ban on retail crypto trading. This movement indicated their procedure to turn out to be a more outstanding crypto hub.
Source : cryptonews.com
