Hong Kong Regulators Warn Crypto Investors To Be Careful Select Exchangers

SFC as the market watchdog in Hong Kong appealed to the public to be more careful about choosing crypto trading platforms. (Photo; Doc. Xgems)

JAKARTA - The Hong Kong Securities and Futures Commission (SFC) issued a warning to crypto investors in the region to be careful in choosing a virtual asset trading platform (VATP). SFC urges investors to ensure that the VATP they use already has a license or is in the process of applying for a license.

The warning comes on February 5, 2024, months after the SFC issued a similar statement suggesting users avoid unlicensed VATP operators. The SFC states that many unlicensed VATP operators do not meet the regulatory standards set by the SFC and do not have the opportunity to get a license.

The SFC also provides information about two lists of VATPs available on its official website. The first list contains VATP names that have obtained licenses from the SFC, while the second list contains VATP names that are applying for licenses to the SFC. The SFC emphasizes that investors must check these lists before transacting on the VATP.

"VATP registered on the 'LIST of licensed virtual asset trading platforms' has officially obtained a license from the SFC. VATP registered on the 'Light of candidates for virtual asset trading platforms' is VATP operating in Hong Kong and has applied for a license application to the SFC on or before February 29, 2024," explained the SFC.

The SFC also informed that VATPs that do not apply for license applications until February 29, 2024 must stop operating on May 31, 2024. The SFC urges crypto users who use the VATPs that are not registered on both lists to immediately close their accounts or transfer their funds to licensed VATPs.

Based on data from CoinMarketCap, Hong Kong is one of the largest crypto markets in the world, with daily trading volumes reaching more than $1 billion on February 6, 2024. Hong Kong is also home to several leading crypto exchanges, such as Bitfinex, Huobi, OKEx, and FTX.

Hong Kong has quite strict crypto regulations, requiring all VATPs operating in the region to obtain licenses from the SFC. The SFC issued a regulatory framework for the VATP in November 2019, regulating aspects such as investor protection, money laundering prevention, risk management, and governance.