1 year ago
The Hong Kong Securities and Futures Commission (SFC) issued a warning connected Monday, Aug. 7, to virtual plus trading platforms (VATPs) progressive successful what it practices, emphasizing the imaginable ineligible and regulatory consequences.
This announcement comes connected the heels of the SFC’s reflection of unlicensed VATPs falsely claiming to person submitted licensing applications, and different non-compliant activities, including launching caller services and products nether existing entities that whitethorn beryllium successful usurpation of caller regulations.
The informing is portion of a broader effort by Hong Kong authorities to modulate the burgeoning virtual plus industry. Under the caller regime, virtual plus work providers are required to use for a licence from the SFC, with a transitional play extending until May 31, 2024, to let VATPs to hole for compliance.
Misleading claims, non-compliant activities
According to the SFC, immoderate unlicensed VATPs person misleadingly claimed to person submitted licence applications erstwhile they person not, creating a mendacious consciousness of assurance among the public. The committee has besides noted cases wherever VATPs person acceptable up caller entities to supply virtual plus services successful Hong Kong without complying with ineligible and regulatory requirements.
The SFC warned that engaging successful fraudulent oregon reckless misrepresentation for the intent of inducing trading successful virtual assets could pb to a good of up to $1,000,000 and/or up to 7 years’ imprisonment.
Regulatory efforts
Hong Kong has been moving to onslaught a equilibrium betwixt encouraging the crypto industry’s maturation and ensuring regulatory compliance. The Hong Kong Monetary Authority (HKMA) has antecedently urged banks to judge crypto clients portion introducing a caller licensing authorities for crypto exchanges to foster wide regulations.
However, accepted banks stay cautious owed to imaginable regulatory blowback and concerns implicit anti-money laundering and know-your-customer issues with crypto exchanges.
In May, the SFC eased requirements for crypto exchanges, revising its guidelines owed to a shortage of liable officers (ROs) successful the field. This accommodation was seen arsenic a pragmatic attack to a deficiency of experienced endowment successful the rapidly increasing virtual plus sector.
Investor informing and telephone for nationalist vigilance
The SFC’s informing besides serves arsenic a reminder to retail investors, reminding them:
“…to beryllium wary of the risks of trading virtual assets connected an unregulated VATP. Investors whitethorn look the imaginable hazard of losing their full concern held connected the VATP if it ceases operation, collapses, is hacked oregon different suffers from immoderate misappropriation of assets.”
Most VATPs accessible by the nationalist stay unregulated, and the SFC has pledged to update the database of virtual plus trading platforms connected its website arsenic approvals are granted. At present, lone OSL Exchange and HashKey speech are regulated wrong Hong Kong.
The station Hong Kong securities regulator warns unlicensed virtual plus trading platforms whitethorn look steep fines, imprisonment appeared archetypal connected CryptoSlate.
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