The Securities and Futures Fee (SFC) of Hong Kong issued a discover about unlicensed digital asset buying and selling platforms “partaking in improper practices,” warning of potential legal costs.
In an Aug. 7 discover, the SFC mentioned sure buying and selling corporations had falsely claimed to have submitted purposes for licenses in Hong Kong. The securities regulator mentioned ought to the businesses truly apply to function legally within the particular administrative area, it might contemplate any false statements in addition to doable legal costs.
In line with the SFC, some unlicensed crypto buying and selling platforms in Hong Kong arrange new entities, claiming to have submitted purposes to the securities regulator. Nevertheless, “the providers and merchandise provided by a few of these new entities will not be in compliance with the authorized and regulatory necessities” underneath the SFC’s guidelines that grew to become efficient as of June 1.
“These established entities may also want to use for SFC licences or they need to proceed to shut their enterprise in Hong Kong,” mentioned the monetary watchdog. “Conducting unlicensed actions in Hong Kong is a legal offence.”
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Sure crypto corporations, together with HashKey and OSL, have acquired licenses underneath the SFC’s regime, permitting the platforms to supply quite a lot of crypto providers to Hong Kong residents. The licensing regime requires crypto exchanges and repair suppliers to make sure protected custody of belongings in addition to comply with Know Your Buyer, Anti-Cash Laundering and Combatting the Financing of Terrorism guidelines, amongst others.
