Hong Kong’s Regulator Sets Deadline for Crypto Trading Platforms
Hong Kong’s top financial regulator, the Securities and Futures Commission (SFC), has reminded crypto trading platforms to submit their license applications by March 1. The SFC emphasized the importance of investors checking the regulatory status of these platforms before trading. Failure to comply with the deadline will result in the closure of businesses in Hong Kong by May 31.
Investors Urged to Trade Only on Licensed Platforms
The SFC advised investors to trade exclusively on licensed virtual asset trading platforms. It urged them to act quickly and close their accounts on platforms that do not appear on the SFC’s lists of licensed platforms or platform applicants.
Two Licensed Platforms in Hong Kong
Hong Kong’s crypto licensing regime began in June 2023, allowing licensed exchanges to offer retail trading services. Currently, HashKey and OSL are the only two platforms with licenses. The SFC is reviewing applications from 14 other firms, including OKX and Bybit.
Crackdown on Unregulated Platforms
The SFC’s deadline is part of its broader efforts to regulate the crypto industry. The regulator aims to clamp down on unregulated trading platforms. Additionally, the Hong Kong government plans to publish a consultation on regulating over-the-counter crypto trading platforms due to increasing risks.
Hot Take: Hong Kong Takes Steps Towards Regulating Crypto Trading Platforms
Hong Kong’s Securities and Futures Commission has set a deadline for crypto trading platforms to submit their license applications. This move is part of the regulator’s efforts to regulate the industry and protect investors. By urging investors to trade only on licensed platforms, the SFC aims to ensure transparency and compliance with regulations. With only two licensed platforms currently operating in Hong Kong, the SFC is reviewing applications from several other firms. The government’s plan to regulate over-the-counter crypto trading platforms further demonstrates its commitment to addressing risks in the crypto market.
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