The Securities regulatory body of Hong Kong jurisdiction has added seven new digital assets trading platforms to its alert list for operating illegally without licences.
Hong Kong has stood out as a crypto-friendly hub since mid-2023, with clear regulations supporting legal crypto trading. Despite being a special administrative region of China, Hong Kong contrasts sharply with mainland China where crypto trading has been illegal since December 2021.
Recently the Securities and Futures Commission (SFC) of Hong Kong has expanded its alert list with seven new crypto exchanges accused of operating illegally without proper registration with financial regulators.
This measure aims to safeguard crypto investors by highlighting the risks of crypto scams and fraud in the crypto space.
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The updated list, released on July 5, includes platforms like Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest. The SFC has specifically cited these crypto exchanges for suspected fraudulent activities, including misleading their investors about their fake registration status with the SFC and employing coercive tactics such as blocking withdrawals and charging fees to resume operations.
Earlier this year, the SFC warned multiple times about crypto firms posing as trusted exchanges. These efforts by the Hong Kong government agency demonstrate their commitment to promoting cryptocurrency adoption while safeguarding investors by preventing bad actors from entering the market.
Hong Kong Crypto Regulation Under Fire
The Hong Kong government openly invited global crypto exchanges to register with local financial regulators. However, complying with Hong Kong’s crypto regulatory framework has proven challenging for many companies. Reportedly, several popular crypto exchanges have opted to exit the Hong Kong market as a result.
Last month, a Hong Kong official expressed concerns about the city’s crypto regulatory policy, stating that it is overly stringent and challenging for companies to register and comply with. The official also highlighted that these rules do not provide sufficient benefits to crypto companies, which has led to many choosing to exit the Hong Kong market.
Read also: SEC Director Gurbir S. Grewal calls for stronger crypto regulation
Hong Kong SFC Cracks Down: Seven Crypto Trading Platforms Added to Illegal Operations Alert List
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