The Securities and Futures Commission of Hong Kong (SFC) has issued alerts against seven crypto trading platforms for operating illegally in the region without proper licenses.
The Hong Kong SFC maintains public records of all registered, unregistered, and illegal crypto trading entities to mitigate risks related to scams and fraud. On July 5, the Alert List, which identifies exchanges that are either unlicensed or falsely claim association with Hong Kong, was updated to include these seven exchanges.
For Hong Kong investors’ safety
The Hong Kong SFC has maintained the alert list since January 2020, which now includes 39 entries. In 2024 alone, 28 cryptocurrency exchanges have been flagged. The latest additions to the list are Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest.
According to the warnings, these exchanges are suspected of engaging in fraudulent activities, misleading investors into believing they were registered with the SFC. Many of these exchanges employed extortion tactics, such as blocking withdrawals and demanding “fees” to resume operations.
Hong Kong seeks to regulate crypto trading services
Since early 2024, Hong Kong has taken aggressive measures to ensure regulatory compliance for crypto trading services in the region. The Hong Kong SFC required all crypto exchanges to apply for a license by May 31.
Following the deadline, all cryptocurrency exchanges that failed to apply for an operational license were legally required to shut down.
During this period, while over 22 cryptocurrency exchanges applied for licenses to continue operating in the region, many ultimately withdrew their applications just before the deadline.
Recently, Hong Kong government entities dedicated to attracting foreign investments attended a tech conference in Toronto, Canada, to promote its offshore ready-to-move technology hub for Canadian crypto and Web3 startups. The event was conducted in partnership with the Hong Kong Economic and Trade Office in Toronto (Toronto ETO), Invest Hong Kong (InvestHK), and StartmeupHK (SMUHK).
