Trading Only on Approved Virtual Asset Trading Platforms
The Hong Kong Securities and Futures Commission (SFC) has issued a reminder to crypto investors in Hong Kong that they should only use or trade on approved virtual asset trading platforms (VATP). The SFC emphasized the importance of verifying a VATP’s regulatory status before conducting any transactions. The regulator had previously warned users to avoid unlicensed operators as many of them had little chance of obtaining a license. The SFC has two lists of VATPs – one for licensed entities and another for applicants. Virtual Asset Service Providers (VATPs) that fail to submit their license applications by February 29 will be required to cease operations by May 31.
Importance of Regulatory Approval
The SFC highlighted the importance of trading on approved virtual asset trading platforms in order to protect investors. The regulator specified that VATPs featured on the “List of licensed virtual asset trading platforms” have obtained formal licenses, while those on the “List of virtual asset trading platform applicants” have submitted license applications on or before February 29, 2024. The SFC urged users to avoid trading on unapproved VATPs as they offer no protection to investors. It stated that trading on platforms still under review carries a risk. Investors were advised to close accounts on unapproved VATPs or consider transferring their funds to licensed entities.
Cessation of Operations for Non-Compliant VATPs
The SFC informed virtual asset service providers that fail to submit their license applications by February 29 that they will be required to cease operations by May 31. This deadline serves as a clear message that the regulator is taking strict measures to ensure compliance. The SFC wants to crack down on unlicensed operators that pose risks to investors. The deadline also serves to protect investors by urging them to avoid trading on unapproved platforms. By closing accounts or transferring funds to licensed VATPs, investors can mitigate the risks associated with unregulated platforms.
Hot Take: SFC Cracks Down on Unapproved Virtual Asset Trading Platforms
The Hong Kong Securities and Futures Commission (SFC) has issued a warning to crypto investors in Hong Kong, urging them to only use or trade on approved virtual asset trading platforms. The regulator has emphasized the importance of verifying a platform’s regulatory status before engaging in any transactions. With two lists available – one for licensed platforms and another for applicants – the SFC has made it clear that unapproved platforms offer zero protection to investors. The SFC has set a deadline for non-compliant platforms to cease operations, further reinforcing its commitment to cracking down on unlicensed operators. By complying with the SFC’s guidelines and using licensed platforms, investors can ensure a safer and more regulated trading experience in Hong Kong.
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