Hong Kong cryptocurrency investors are only permitted to utilize or trade on platforms that have been licenced by the securities authority for the area. Crypto investors using platforms not on its two lists were asked by the authority to either terminate their accounts or move their money to firms that are licenced.
Checking the Regulatory Standing of a Virtual Asset Trading Platform
Crypto investors in the area have been cautioned by the Hong Kong Securities and Futures Commission (SFC) to use and trade only on platforms that have been approved for virtual asset trading (VATP). The SFC underlined in a statement issued on February 5, 2024, how crucial it is to confirm a VATP’s regulatory status before to doing any business.
The most recent caution from the Hong Kong regulator was issued a few months after it requested that customers abstain from utilizing unregistered providers. Many of these organizations had no realistic chance of obtaining the license, according to the SFC’s suggestion at the time.
In the meanwhile, the SFC cautioned investors to closely monitor the list that includes the VATPs in its most recent alert. The regulator claims that there are two lists: one for organizations that have been granted licenses and another for individuals who have requested for licenses.
“VATPs on the ‘List of licensed virtual asset trading platforms’ are formally licensed by the SFC. VATPs on the ‘List of virtual asset trading platform applicants’ include VATPs operating in Hong Kong which have submitted licence applications to the SFC on or before 29 February 2024,” the SFC clarified.
The regulatory body further said that Virtual Asset Service Providers (VATPs) will have to stop operations by May 31 if their licence applications are not submitted by February 29. However, the SFC advised cryptocurrency users utilising VATPs that aren’t on either list to either terminate their accounts or think about moving their money to VATPs that are licenced.
The SFC stated that while the licence applications for the companies on the list of virtual asset trading platform applicants are still pending, trading on these platforms “still carries a risk.” In closing, the regulator advised consumers not to trade on unregulated VATPs since they provide no protection at all.
- Published By Team Hongkong Journalist