Hong Kong Securities and Futures Commission inspected 11 virtual asset platforms and found insufficient supervision

According to Bloomberg, citing sources, the Hong Kong Securities and Futures Commission conducted on-site inspections of some virtual asset trading platforms and found unsatisfactory behavior. It is unknown whether the relevant platforms can eventually obtain formal licenses. Sources said that some cryptocurrency companies rely too much on a few senior executives to oversee the custody of customer assets, while other companies have not properly prevented cybercrime risks. It is not clear which companies have not met the requirements of the Securities and Futures Commission. It is reported that the on-site inspection is still ongoing. A spokesperson for the Hong Kong Securities and Futures Commission said that it would not comment on specific cases, but the inspection was conducted to determine whether the applicant complied with its requirements, and special attention would be paid to the applicant's protection of customer assets and the process of knowing your customer. For platforms that are unable to correct serious defects found during on-site inspections, the Hong Kong Securities and Futures Commission may choose to cancel their status as licensed or reject their license applications. (aastocks)