July 17, 2024
By Anjali Kochhar
The Hong Kong-based Securities and Futures Commission (SFC) has put seven cryptocurrency exchanges on its notice list for operating without the necessary licenses, taking aggressive steps to protect investors. This action highlights the growing dangers connected to fraud in the digital asset market.
The newly listed exchanges include Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest, all suspected of misleading investors by falsely claiming registration with the SFC. These platforms have been reported for coercive practices such as blocking withdrawals and imposing additional fees to resume operations.
Hong Kong’s regulatory efforts in the cryptocurrency realm have intensified since the beginning of 2024. In May, the SFC mandated that all crypto exchanges must obtain licenses to continue operations. Following this deadline, over 22 exchanges applied for licenses, although several withdrew their applications just before the cutoff.
Moreover, Hong Kong authorities recently showcased their capabilities in managing crypto-related crimes by thwarting a kidnapping attempt where criminals demanded a ransom of 660,000 USDT (Tether stablecoin). Louis Li Sze-Chung, a prominent local cryptocurrency investor, highlighted the traceability of stablecoins like USDT, which allows authorities to freeze or destroy implicated funds swiftly.
Despite these advancements, challenges persist in regulating decentralized cryptocurrencies such as Bitcoin and Ethereum, which operate without intermediaries, complicating traceability and law enforcement efforts. Transactions conducted through decentralized exchanges (DEX) remain untraceable, posing further challenges.
Joshua Chu Kiu-wah, a cybersecurity lawyer, noted the efficiency in freezing stablecoin funds compared to traditional banking processes, yet acknowledged the hurdles in tackling decentralized systems.
Hong Kong’s proactive stance reflects ongoing efforts to mitigate risks associated with digital assets while advocating for innovations to enhance security in the evolving financial landscape.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
