The Securities and Futures Commission (SFC) has issued a warning to unlicensed virtual asset trading platforms (VATPs) regarding their improper practices. The SFC emphasizes the potential legal and regulatory consequences of these practices and advises investors to be cautious when trading virtual assets on unregulated VATPs. Specifically, the SFC addresses the issue of certain VATPs falsely claiming to have submitted license applications to the SFC, misleading the public about their compliance with regulatory requirements. The SFC also highlights non-compliant activities by VATPs, including offering services and products that do not adhere to the new regime’s legal and regulatory requirements. The SFC scrutinizes past non-compliant behaviors and expects VATPs to demonstrate a genuine intention to rectify such activities. Furthermore, the SFC reminds unlicensed VATPs operating in Hong Kong, including both newly established entities and existing ones, to either comply with the virtual asset service provider regime or cease their operations. The SFC cautions investors about the risks associated with trading on unregulated VATPs and advises them to verify the licensing status of VATPs through the SFC’s list of approved virtual asset trading platforms.
Resource:
https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=23PR87