Hong Kong maintains crackdown on unregistered crypto exchanges
text_fields
Hong Kong is continuing its vigilant efforts to regulate and clamp down on fraudulent and unregistered crypto exchanges operating within the Special Administrative Region (SAR) of China.
With the global cryptocurrency market reaching a valuation of $2.60 trillion (roughly Rs. 2,16,86,900 crore), the influx of both legitimate entrepreneurs and nefarious entities has posed significant challenges to investor safety.
As new crypto exchanges emerge worldwide, distinguishing between genuine platforms and scams has become increasingly difficult. Hong Kong is determined to ensure that all crypto exchanges operating within its jurisdiction are legitimate entities registered with the relevant authorities.
The Securities and Futures Commission (SFC) of Hong Kong has reiterated its stance by reminding existing crypto exchanges in the region about the deadline for applying for an official operational license, which passed on February 29.
After May 31, Hong Kong will take measures to prohibit crypto businesses lacking this license from continuing operations.
In recent months, a total of 22 crypto trading platforms in Hong Kong have applied for the operational license. Notable applicants include Hong Kong BGE Limited, Victory Fintech Company Limited, and DFX Labs, according to CoinTelegraph.
Amid heightened regulatory scrutiny, the SFC has raised concerns about one specific platform - HKCEXP. The authorities have issued warnings against engaging with this platform, suspecting it to be involved in ongoing crypto frauds.
The HKCEP has allegedly deceived investors by falsely claiming registration with the SFC, as stated in a press release issued by the commission on Monday.
In March, the SFC took action against several non-compliant crypto platforms. To ensure transparency and protect investors, Hong Kong plans to maintain a list of licensed platforms on its official website.
Similarly, the Indian government has implemented measures to safeguard its investor community against scams and financial crimes.
In December 2023, the Financial Intelligence Unit India (FIU) issued show-cause notices to nine offshore companies, including Binance, Kucoin, and Huobi, requiring them to demonstrate compliance with Indian regulations. These regulations include adherence to the Anti-Money Laundering and Counter-Financing of Terrorism (AML-CFT) framework, which falls under the provisions of the Prevention of Money Laundering Act (PMLA).
