2 years ago
Justin Sun does not judge the U.S. fraud charges levied against him volition interaction Huobi Global’s licence exertion successful Hong Kong, Nikkei Asia reported connected March 27.
However, lawyers judge different and told the paper that the Hong Kong Securities and Futures Commission (SFC) volition beryllium hesitant to o.k. a licence nether existent circumstances.
According to the report, allegations of past misconduct volition effect successful “extreme scrutiny” which volition hamper advancement arsenic regulators crook implicit each chromatic aggregate times earlier reaching a conclusion. Lawyers judge that, astatine the precise least, the process volition beryllium delayed significantly.
SEC charges
The U.S. SEC unveiled fraud and unregistered securities charges against Sun connected March 22.
The fraud charges impeach Sun and his wholly-owned companies, including the Tron Foundation, of manipulating the trading enactment of the Tron and BitTorrent cryptocurrencies to make the quality of progressive trading.
Additionally, the SEC considers the TRON and BitTorrent cryptocurrencies to beryllium securities that were issued without registration.
SEC seat Gary Gensler said successful the statement:
“This lawsuit demonstrates again the precocious hazard investors look erstwhile crypto plus securities are offered and sold without due disclosure.”
Multiple celebrities were besides implicated successful the charges against Sun for promoting the 2 cryptocurrencies without disclosing that they were paid to bash it. Most person settled retired of tribunal without admitting guilt.
Sun told Nikkei Asia that the charges clasp “no merit” and volition not interaction Huobi’s operations.
Hong Kong becoming a crypto-hub
Hong Kong precocious pivoted connected crypto and is adopting a much favorable stance toward the industry.
The city-state volition legalize retail trading of cryptocurrencies connected June 1 and has created a regulatory model for the industry, which includes establishing a licensing authorities for Virtual Assets Service Providers (VASPs).
As of March 20, much than 80 firms person expressed an involvement successful applying for the VASP license, portion much than 20 firms person announced plans to found a beingness successful Hong Kong, including Sun’s Huobi exchange.
Sun announced helium would determination Huobi Global’s office to Hong Kong and advised the manufacture against being excessively “U.S.-centric.” In the weeks since, helium has been confident that Huobi volition unafraid its VASP license.
However, caller events whitethorn propulsion a wrench successful his plans to acceptable up store successful Hong Kong.
The station Justin Sun’s US fraud charges could hamper Huobi’s licence exertion successful Hong Kong appeared archetypal connected CryptoSlate.
English (US) 