Hong Kong SFC to Sanction 7 Illegal Crypto Exchanges

The Securities and Futures Commission (SFC) of Hong Kong has issued a sanction against seven (7) unlicensed crypto exchanges in the region.

The Securities and Futures Commission (SFC), the most senior financial regulator in Hong Kong, has issued an alert against seven crypto trading platforms for operating in the region without the requisite licenses. The Hong Kong SFC preserves public records of all registered and unregistered crypto exchanges to mitigate the overall risk associated with fraud and schemes. The SFC emphasizes exchanges that are either unlicensed or have false associations with Hong Kong in its alert List.

The Hong SFC has maintained the Alert List since January 2020, containing 39 entries. In 2024 alone, 28 cryptocurrency exchanges have been identified as engaging in suspicious activities. Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest are the most recent additions to this list.

Investors are misled into believing these exchanges are registered with the SFC, as warnings suggest they are suspected of engaging in fraudulent activities. Numerous exchanges implemented extortion tactics, including the imposition of withdrawal restrictions and the imposition of “fees” to resume operations.

Hong Kong regulators have implemented innovative measures to guarantee the regulatory compliance of crypto trading services since the commencement of 2024. By May 31, the SFC had already requested that all exchanges apply for a license. The SFC has requested exchanges that must still register to close their stores after the deadline.

More than 22 cryptocurrency exchanges submitted applications for licenses to preserve their presence in the region during this time. Nevertheless, many of them ultimately opted to rescind their applications just before the deadline.

The results of the Stablecoin consultation in Hong Kong will be released shortly

The stablecoin consultation report results are scheduled for release by the financial authorities in Hong Kong shortly as part of the region’s legislative proposal to regulate the industry.

The Financial Services and the Treasury Bureau announced earlier today that they will publish the results of the December consultation on stablecoin issuers and submit the text of the legislative bill to the Legislative Council.

Regulators recommended that all stablecoin issuers that referenced fiat should obtain a license from the Hong Kong Monetary Authority, the de facto central bank that co-released the stablecoin consultation, at that date.

Earlier today, the FSTB issued a statement recommending that only specific entities, such as licensed stablecoin issuers, authorized institutions, and licensed crypto trading platforms, be permitted to sell fiat-pegged stablecoin to users.

According to the statement, the proposal also intends to establish regulations for stablecoin issuers that address governance, redemption, reserve management, and stability mechanisms.