March 27, 2024
By Sharan Kaur Phillora
In a move to safeguard investors, the Securities and Futures Commission of Hong Kong (SFC) has issued a warning about HKCEXP, a dubious trading platform falsely claiming to be registered with the regulatory body. This alert comes in the wake of the SFC setting a February 29 deadline for cryptocurrency exchanges to apply for operational licenses. Those failing to meet this requirement must cease operations in Hong Kong by May 31.
Here’s what we know:
Out of numerous contenders, 22 crypto trading platforms stepped forward to apply for licenses, including four exchanges previously under the SFC’s voluntary regime for crypto trading platforms. Despite these measures and the SFC’s efforts to publicize such information, the challenge of combating fraudulent entities masquerading as legitimate exchanges persists.
The recent crackdown on HKCEXP, accused of misleading investors by purporting to be an “SFC-registered business,” highlights the ongoing issue. The platform even went as far as to provide a fictitious Hong Kong address for its registration. One affected individual reported exorbitant withdrawal fees charged by the exchange.
To enhance investor awareness and promote safe cryptocurrency trading practices, the SFC plans to maintain a public list of crypto platforms granted operational licenses. Exchanges that missed the licensing application deadline now face restricted operational capabilities and are prohibited from engaging in marketing activities within the city.
Adding to the regulatory challenges, earlier in March, the SFC identified and took action against several fraudulent websites impersonating prominent local cryptocurrency exchanges. These malicious entities created counterfeit domains to mimic two licensed exchanges, OSL Digital Securities and Hash Blockchain Limited (HashKey).
The SFC has advised investors to diligently verify trading platforms using its public register of licensed individuals and institutions, along with a list of licensed virtual asset trading platforms, which includes official website details of licensed entities.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.
