Hong Kong acts against unregulated cryptocurrency trading platforms
The Securities and Futures Commission in Hong Kong plans to publish a list of licensed and unlicensed virtual asset trading platforms (VATPs) to help the public identify potentially unregulated platforms
The Securities and Futures Commission (SFC) in Hong Kong is stepping up efforts to combat unregulated cryptocurrency trading platforms in the region. The SFC plans to enhance transparency by publishing a comprehensive list of licensed, deemed licensed, closing down, and application-pending Virtual Asset Trading Platforms (VATPs) to help the public identify potentially unregulated platforms. Additionally, the SFC will maintain a separate list of “suspicious VATPs” on its website to raise awareness among the public.
The decision comes in the wake of the JPEX cryptocurrency exchange scandal, which is being described as one of the most severe cases of financial fraud in the region. Despite not having a license, JPEX allegedly promoted its services to Hong Kong residents. The SFC plans to collaborate with local police to establish a dedicated channel for citizens to report suspicious activity and potential legal breaches.
Why does it matter?
Hong Kong is committed to combating unregulated cryptocurrency trading platforms by publishing lists of licensed and unlicensed trading platforms. These measures increase transparency, identify unregulated platforms, and protect investors from financial fraud and scams.