There’s a clear message from Hong Kong's SFC: crypto platforms need to get licensed or risk shutting down by the end of May.
In Brief
In an important announcement, Hong Kong's SFC has ordered unregistered crypto exchanges to file for licensing by February 29, otherwise, they will be forced to shut down by May 31.
Hong Kong’s Securities and Futures Commission In a notice released on February 5, the SFC has firmly instructed unregistered Virtual Asset Trading Platforms (VATPs) to submit their license applications by February 29, or they will be required to halt their operations by May 31.
The SFC emphasized the necessity for investors to only deal with licensed platforms to ensure their safety and to check the regulatory status of these platforms. platforms Investors are encouraged to look for updates on the SFC’s official 'List of licensed virtual asset trading platforms' and 'List of virtual asset trading platform applicants' by March 1.
According to the SFC, it is vital for investors to routinely check the regulatory status of VATPs, especially on March 1, 2024. Those that don't submit their applications by the end of February will be mandated to shut down by May 31 due to the rules established by the SFC.
Hong Kong initiated its cryptocurrency Last year, Hong Kong established a licensing framework aimed at allowing compliant exchanges to provide retail trading services.
At present, only two platforms have received licenses in Hong Kong—HashKey and another yet to be announced. OSL Nevertheless, the SFC is currently evaluating the applications of 14 other crypto firms, such as OKX, Bybit, and HKVAEX. The SFC warns that just filing an application does not guarantee approval, so investors should exercise caution when dealing with these entities.
The public is reminded that applications listed as 'virtual asset trading platform applicants' are still under review, meaning that trading on such platforms could carry various risks.
Hong Kong is enhancing its regulations to support cryptocurrencies.
To enhance transparency and protect investors The SFC has been vigilant against scams in the crypto space, classifying JPEX as fraudulent for misleading people into thinking they were awaiting a legitimate Hong Kong crypto license.
This follows a significant scam where the Hong Kong police received reports from over 1,600 victims, totaling losses of around HK$1.2 billion. crypto assets.
Moreover, Hong Kong's regulatory authorities have rolled out a new set of rules governing stablecoins, indicating their dedication to promoting a favorable crypto climate while also expressing readiness for Bitcoin ETF products as part of their evolving role in the crypto world.
As the deadline approaches, virtual asset It is urged that investors adhere to all regulatory guidelines and perform thorough research to safeguard their assets.
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