Pay attention to screening compliant exchanges, and Hong Kong will crack down on unregulated exchanges

The Securities Futures Commission (SFC) of Hong Kong has recently listed seven unregulated cryptocurrency trading platforms operating illegally.

The named platforms are Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest. This brings the total number of entries in the SFC’s Alert List to 39 since its inception in 2020.

Mandatory Licensing for Crypto Exchanges

In 2024, the SFC identified 28 cryptocurrency exchanges involved in fraudulent activities, deceiving investors about their registration status.

These exchanges reportedly employed tactics such as limiting clients' withdrawal abilities and demanding fees to unblock accounts.

To counter these issues, Hong Kong mandated that all crypto exchanges obtain a license by the end of May. Exchanges failing to meet these standards were required to cease operations.

While over 22 exchanges applied for licenses, several withdrew their requests before the deadline.

SFC’s Register of Crypto Entities

To protect investors, the SFC maintains a register of all registered and unregistered cryptocurrency entities. The Alert List, established in January 2020, serves as a mechanism to highlight unregulated or fraudulent transactions connected to Hong Kong.

Since early 2024, the SFC has taken measures to enhance compliance in the crypto space, including publishing warnings and updating the Alert List to minimize risks associated with market scams and fraud.

The SFC’s continuous efforts reflect its commitment to ensuring a safe and fraud-free cryptocurrency trading environment.

By educating the public on unlicensed entities, the SFC aims to protect investors' interests and maintain market integrity.

Hong Kong's Tech Hub Ambitions

Hong Kong's local and central governments are actively promoting the region as a technology hub, particularly targeting Canadian crypto and Web3 companies.

A tech conference in Toronto showcased Hong Kong as a prime offshore technology destination.

The event was co-hosted by Toronto ETO, InvestHK, and Startmeup HK of the Hong Kong University and Association for Investment Promotion (SMUHK).

Hong Kong government supports

The Hong Kong government is working to attract foreign investments and foster a healthy tech environment, aiming to become a global fintech center.

Initiatives include providing incentives and support for new and established tech firms, creating favorable conditions for crypto-based businesses.