The Hong Kong securities regulator issued a warning against all unlicensed crypto firms and ordered them to register or leave the Hong Kong jurisdiction.
Hong Kong is a special administrative region of China. In China, crypto-related activities are strictly prohibited but in Hong Kong crypto trading is fully legal. In June of this year, the Hong Kong authorities introduced a new crypto regulatory framework & welcomed the crypto companies to get registered with the Hong Kong securities regulatory body SFC.
On 7 Aug 2023, The Hong Kong SFC body issued a notice against all the unlicensed crypto companies operating crypto business in Hong Kong.
The SFC said that many crypto companies are falsely claiming that they have submitted licensing applications with the corresponding regulatory body. According to SFC, there are so many companies following unethical ways of providing crypto services, which is fully illegal in the Hong Kong jurisdiction.
Furthermore, the SFC body stated that all such crypto companies should either apply with the SFC to secure a crypto license or just proceed to shut down crypto operations from Hong Kong.
“These established entities will also need to apply for SFC licenses or they should proceed to close their business in Hong Kong,” the SFC agency said.
Mainland Chinese crypto traders in Hong Kong
Because of the crypto blanket ban in China, some people say mainland crypto enthusiasts are following unethical ways to trade with crypto assets.
As per media reports, mainland Chinese people visit Hong Kong to buy/sell cryptocurrencies in offline stores. Some people do such activities for other people for a big amount of commission fees.
Just a couple of days ago, a Chinese crypto blogger Colin Wu reported that China police detained huge numbers of crypto executives, doing work for crypto companies from their hometown China.
As per reports, the arrested crypto company’s executives were involved in money laundering & crypto gambling directly or indirectly.
Read also: SteaDefi Crypto protocol exploits by a hacker
Hong Kong securities regulator warns unlicensed crypto firms
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