Hong Kong is taking action against 7 of its crypto exchanges.
The Securities and Futures Commission (SFC) in Hong Kong has flagged seven crypto trading platforms for operating illegally. These platforms didn’t have the required licenses to operate in the region.
The SFC maintains a public registry to track all crypto trading platforms, including registered, unregistered, and illegal ones. This helps reduce the risk of scams and fraud. Their “Alert List” identifies exchanges that are either unlicensed or falsely claimed to be associated with Hong Kong. On July 5th, seven new platforms were added to this list.
The Securities and Futures Commission (SFC) of Hong Kong has been vigilant in identifying and flagging unlicensed cryptocurrency trading platforms. Their “Alert List,” established in January 2020, currently contains 39 entries, with a staggering 28 additions made just in 2024.
The latest additions on July 5th include Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest. These platforms are all suspected of fraudulent activities, including:
- Operating without a license: The SFC highlights the lack of proper authorization for these platforms to operate in Hong Kong.
- Misrepresenting affiliation: Some platforms allegedly misled investors into believing they were SFC-registered, adding a layer of false legitimacy.
- Employing extortion tactics: The SFC warns of withdrawal blockages and demands for exorbitant “fees” to reactivate accounts, a common red flag of crypto scams.
Since early 2024, the Securities and Futures Commission (SFC) has been aggressive in ensuring regulatory compliance. They set a deadline of May 31st for all crypto exchanges to apply for licenses. Unlicensed platforms were forced to shut down after the deadline, with many withdrawing applications just before it. This action highlights Hong Kong’s commitment to protecting investors from potential scams associated with unregulated crypto trading.
