- Hong Kong’s FSC is dissatisfied with the exchange services provided by deemed-to-be-licensed crypto firms.
- If the exchanges do not adhere to the FSC’s requirements, they will not receive full licenses to operate legally in the jurisdiction.
As a seasoned analyst with years of experience in the financial industry, I find myself closely monitoring the developments in Hong Kong’s crypto landscape. The recent revelation by Bloomberg regarding the Securities and Futures Commission (SFC)’s dissatisfaction with certain crypto exchanges is a significant event that underscores the need for robust regulations in this sector.
According to a report by Bloomberg, it appears that Hong Kong’s Securities and Futures Commission (SFC) is not pleased with certain crypto exchanges as they go through the process of obtaining a full operational license. Sources close to the situation have shared that regulators have conducted site visits, which uncovered questionable practices within these exchanges believed to be on the verge of licensing.
Among the 11 companies yet to receive licensing – Crypto.com, Bullish, HKbitEX, PantherTrade, Accumulus, DFX Labs, Bixin.com, EX.IO, YAX, WhaleFin, and Matrixport HK – there are some that have allegedly failed to establish robust cybersecurity measures to combat crime, while also relying excessively on a small number of top executives for handling user custody needs. Unfortunately, it remains uncertain which of these companies awaiting licensure have displayed such issues.
SFC Forbids Deemed-to-be-Exchanges From Onboarding New Clients
The spokesperson for the Securities and Futures Commission (SFC) stated that they carried out checks on the platforms to ensure they were complying with licensing procedures, especially regarding the safekeeping of clients’ funds and the “know-your-client” protocols. If a platform fails to meet these requirements and significant issues are found during physical inspections, the SFC may decide to revoke their preliminary licensed status or reject their applications for a formal license.
By the close of 2024, exchanges compliant with regulatory standards, such as those led by CEO Julia Leung, will be granted licenses. Currently, only HashKey and OSL are fully licensed in Hong Kong. Previously, 12 other exchanges ceased operations due to reluctance to operate under the new regulations that were enforced. The 11 remaining applicants have been advised by the SFC to halt onboarding of new clients until they secure their full licenses at year’s end.
After the fraudulent activity conducted by the unauthorized cryptocurrency platform JPEX, which resulted in the theft of approximately $205 million from 2,636 individuals, the regulatory body has decided to adopt a more stringent approach.
Read More
- PENDLE PREDICTION. PENDLE cryptocurrency
- CKB PREDICTION. CKB cryptocurrency
- PBX PREDICTION. PBX cryptocurrency
- EUR INR PREDICTION
- USD DKK PREDICTION
- ICP PREDICTION. ICP cryptocurrency
- GEAR PREDICTION. GEAR cryptocurrency
- USD VND PREDICTION
- CSIX PREDICTION. CSIX cryptocurrency
- IMX PREDICTION. IMX cryptocurrency
2024-08-23 17:28