As a seasoned crypto investor with years of experience in the industry, I’ve seen my fair share of regulatory crackdowns and scams. The latest alert issued by Hong Kong’s Securities and Futures Commission (SFC) against seven unlicensed crypto trading platforms is a stark reminder of the importance of due diligence and regulatory compliance.
The Securities and Futures Commission (SFC) of Hong Kong, the leading financial regulatory body, has issued a warning against seven crypto trading platforms for conducting business in the territory without obtaining the necessary licenses. To minimize risks associated with fraud and scams, the SFC keeps track of all registered and unregistered crypto exchanges in Hong Kong. The SFC’s alert list includes those platforms that do not hold valid licenses or falsely claim affiliations with Hong Kong.
Starting from January 2020, the Securities and Futures Commission (SFC) of Hong Kong has kept a watchlist, known as the Alert List, consisting of 39 entities under scrutiny. In the year 2024, no less than 28 cryptocurrency exchanges have come under investigation for questionable dealings. The most recent additions to this list are Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest.
I’ve analyzed the situation and found that several warnings have been issued, suggesting potential fraudulent practices in these exchanges. These platforms may have deceived investors by giving a false impression of being registered with the Securities and Futures Commission (SFC). Some of these exchanges have resorted to extortion tactics, including blocking withdrawals and demanding additional fees to resume operations.
Starting from January 2024, Hong Kong authorities have taken decisive actions to enforce regulatory rules for crypto trading platforms. The Securities and Futures Commission (SFC) required all trading exchanges to submit licensing applications by May 31. Following the deadline, the SFC instructed unregistered exchanges to close their operations.
As a crypto investor, I’ve noticed that during this time, around 22 digital asset trading platforms sought approval to continue operating in the designated area. Nevertheless, quite a few of these applicants decided against following through and submitted their applications at the very last minute, eventually opting out before the final deadline.
Hong Kong to Soon Release Stablecoin Consultation Results
The financial regulators in Hong Kong will imminently disclose the findings of their stablecoin investigation report, which is included in the legislation they are proposing to govern the industry.
The Financial Services and Treasury Bureau announced earlier today that they will release the outcomes of their December consultation regarding stablecoin issuers, and subsequently submit a proposed legislative bill for their review at the Legislative Council.
During that period, it was proposed by regulators that every issuer of stablecoins referenced to fiat currency obtain a license from the Hong Kong Monetary Authority – the institution serving as the central bank and jointly responsible for releasing the stablecoin consultation.
Earlier today, the Financial Stability, Testing and Banking (FSTB) recommended that certain entities such as licensed stablecoin issuers, authorized banks, and cryptocurrency trading platforms be allowed to offer fiat-pegged stablecoins for sale to the public.
The statement reveals that the proposal intends to impose rules on stablecoin issuers in relation to reserve maintenance, built-in safeguards for price stability, redemption processes, and governance structures.
Read More
- CORE PREDICTION. CORE cryptocurrency
- Top gainers and losers
- SYS PREDICTION. SYS cryptocurrency
- KUNCI PREDICTION. KUNCI cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- CFG PREDICTION. CFG cryptocurrency
- Best coins for today
- DOGE PREDICTION. DOGE cryptocurrency
- THOR PREDICTION. THOR cryptocurrency
- STFX PREDICTION. STFX cryptocurrency
2024-07-15 16:34