The Hong Kong Securities and Futures Fee (SFC) has issued a warning towards some unlicensed digital asset buying and selling platforms (VATPs) in Hong Kong, citing engagement in improper practices. The warning, launched on the SFC’s official web site, highlights a number of areas of concern and potential authorized penalties.
False Claims of Licensing Purposes
The SFC has noticed that some unlicensed VATPs are falsely claiming to have submitted license purposes to the regulatory physique. Such deceptive claims are thought of an offense, as they could induce others to commerce in digital property below a false sense of assurance. The SFC has said that it’ll think about any misrepresentation when assessing the VATP’s health to be licensed.
Non-Compliance with SFC Necessities
The SFC has additionally famous that some VATPs will not be complying with the authorized and regulatory necessities below the brand new regime to manage digital asset service suppliers. This contains launching new providers and merchandise that won’t adjust to the relevant authorized and regulatory necessities. Such non-compliant actions could increase issues in regards to the VATPs’ intention to adjust to the SFC’s authorized and regulatory necessities.
Transitional Preparations
The transitional preparations, efficient earlier than June 1, 2023, had been designed to offer enough time for VATPs to organize for compliance. Nevertheless, the SFC has seen that some unlicensed VATPs have arrange new entities to offer digital asset providers in Hong Kong with out complying with the brand new regime’s necessities.
Warning to Traders
The SFC has taken the chance to warn buyers in regards to the dangers of buying and selling digital property on unregulated VATPs. Traders are cautioned that they could face the danger of shedding their total funding if the VATP ceases operation, collapses, is hacked, or suffers from any misappropriation of property.
The SFC publishes a listing of licensed digital asset buying and selling platforms on its web site to tell the general public of the regulatory standing of VATPs working in Hong Kong. This record contains the names of digital asset buying and selling platform operators formally licensed by the SFC. At present, solely two VATPs, OSL Trade and HashKey Trade, are licensed by the SFC.
The SFC’s warning serves as a well timed reminder to each VATPs and buyers to stick to the authorized and regulatory necessities governing digital asset buying and selling in Hong Kong. The regulatory physique continues to observe the state of affairs intently and has supplied a listing of licensed VATPs to information buyers.
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