Hong Kong’s Unlicensed Crypto Exchange Platforms Must Cease Operations by May 31
by Fintech News Hong Kong March 4, 2024The Securities and Futures Commission (SFC) reiterates its regulatory stance regarding virtual asset trading platforms (VATPs) or more commonly known as crypto exchanges operating in Hong Kong.
As of 1 June 2024, VATPs that do not submit licence applications to the SFC by the 29 February 2024 deadline must cease operations in Hong Kong. Under the transitional arrangements, unlicensed virtual asset trading platforms must obtain SFC licences to resume business activities legally.
Investors are advised to verify the regulatory status of VATPs on the SFC’s website and are encouraged to trade only on SFC-licensed platforms. VATPs not listed as licensed or applicants pose risks to investors.
The SFC emphasises that applications listed under “Virtual Asset Trading Platform Applicants” are under review, with no approval guarantee. Thus, trading on these platforms carries inherent risks.
In light of these developments, investors are strongly urged to trade virtual assets exclusively on SFC-licensed VATPs to ensure regulatory compliance and investor protection.
Featured image credit: Edited from Freepik
