Hong Kong, Monday, April 1, 2024-The Hong Kong Securities and Futures Commission (SFC) recently issued a public warning regarding HKCEXP, a platform that trades crypto assets, urging caution among investors. 1
While the exact nature of HKCEXP remains unclear, the SFC emphasized potential risks associated with it.
The SFC stressed the importance of conducting thorough research and exercising due diligence before engaging in any investment activities related to HKCEXP.
The warning’s specifics depend on further details about HKCEXP.
However, the SFC may be drawing attention to concerns such as the absence of regulation, misleading claims, or limited transparency surrounding HKCEXP’s operations and underlying assets.
In a move to regulate the cryptocurrency market, Hong Kong has stopped accepting license applications from crypto exchanges as of February 29, 2024.
The Securities and Futures Commission (SFC) announced that all noncompliant trading platforms must cease operations in the region by May 31, 2024.
The SFC urged investors using these platforms to “act promptly” and transfer their business to one of the licensed or application-pending exchanges.
Currently, only two crypto exchanges operate with official licenses: OSL Digital Securities (licensed December 15, 2020) and HashKey Exchange (licensed November 9, 2022).
The SFC received license applications from 22 crypto platforms, including four that previously operated under a different regulatory regime.
Four other exchanges initially applied—Huobi HK, Meex, BitHarbour, and Ammbr—but later withdrew or had their applications rejected.
A definitive list of licensed exchanges will be released by the SFC on June 1, 2024. This list will not necessarily include all the previously mentioned applicants.
Once licensed, exchanges can offer retail investors the ability to trade Bitcoin (BTC) and Ether (ETH), with various altcoins and stablecoins under review for approval.
This crackdown follows recent concerns about the Hong Kong-based exchange BitForex, which suspended withdrawals and went silent on communication channels.
Blockchain investigator ZachXBT identified suspicious activity, and users reported issues accessing accounts and assets.
- sfc.hk: https://www.sfc.hk/en/alert-list/3018[↩]
