The Securities and Futures Commission (SFC) of Hong Kong has released a statement citing that it has observed some unlicensed virtual asset platforms are engaging in ‘improper practices.’
In the statement, SFC warns that these improper practices could lead to face legal and regulatory consequences from the financial regulator. It also warns users to be aware of risks involved while trading virtual assets on unregulated entities.
The SFC says that some VATPs (virtual asset trading platforms) claim to have submitted license applications but they have not and it all are unlicensed. “These untrue and misleading claims give the public a false sense of assurance that the VATP is in compliance with the SFC’s regulatory requirements,” clarifies the SFC.
The regulator also warned that platforms with an ongoing licensing process will not be able to receive license clearance if they violate relevant regulations in between.
Through this statement, the SFC also reminds existing virtual asset platforms that it will be subject to the new virtual asset service provider regime. “These established entities will also need to apply for SFC licenses or they should proceed to close their business in Hong Kong,” said SFC.
The SFC kickstarted the crypto economy within Hong Kong last week by granting a retail trading license to crypto exchanges in efforts to follow its latest vision of becoming a crypto hub.
