Authorities in Hong Kong Encourage Crypto Investors to Authenticate Licenses

Hong Kong Securities Regulator Warns Crypto Investors

Hong Kong’s Securities and Future Commission (SFC) has issued a warning to crypto investors, urging them to use only licensed trading platforms and verify the status of the exchanges they have signed up to. This comes as the deadline approaches for virtual asset trading platforms in Hong Kong to submit license applications. If they fail to do so by February 29, they will be required to cease operations by the end of May.

Investors Must Close or Transfer Accounts on Unlicensed Platforms

Investors with accounts on unlicensed trading platforms have been advised to close or transfer them to SFC-licensed platforms. Trading on exchanges that are still applicants is risky, as their approval is not assured. Currently, only OSL Digital Securities and Hash Blockchain are licensed virtual asset trading platforms in Hong Kong.

SFC Alerts Investors to Deceptive Practices

The SFC previously warned investors about unlicensed cryptocurrency platforms engaging in deceptive practices. Some of these platforms falsely claimed that they had submitted applications to the regulator when they had not adhered to regulations. The SFC emphasized that misrepresenting themselves as licensed is a crime for crypto platforms.

Hong Kong’s Crypto Regulation Revamp

In an effort to regain its crypto standing, Hong Kong introduced a licensing program in 2023 and lifted a ban on retail crypto trading. These moves signaled their intention to become a more prominent crypto hub.

Hot Take: Hong Kong Authorities Stress Importance of Verified Licenses

Hong Kong’s securities regulator has emphasized the need for crypto investors to verify the licenses of trading platforms. With the approaching deadline for virtual asset trading platforms to submit license applications, investors are urged to use only licensed platforms and ensure the status of the exchanges they have signed up to. Unlicensed platforms must be closed or transferred to licensed platforms. The warning comes as Hong Kong aims to strengthen its position in the crypto industry and establish itself as a leading hub. By adhering to regulatory requirements and using licensed platforms, investors can mitigate risks and safeguard their investments.