The Securities and Futures Commission’s licensing framework, which took effect on June 1st, places new requirements on crypto companies providing services or operating in Hong Kong.
Hong Kong’s Securities and Futures Commission (SFC) has taken a strong position against unlicensed virtual asset trading platforms, warning them against unethical behavior and indicating the possibility of legal action.
The SFC discovered the dishonest practices used by some trading companies that had been falsely claiming to have submitted license applications in Hong Kong in an official notice published on August 7th. The regulatory agency stressed how carefully it would examine these allegations and issued a warning that making false assertions may result in legal action.
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False Claims and Legal Consequences
The SFC drew attention to the fact that a number of unlicensed cryptocurrency trading platforms in Hong Kong have gone so far as to incorporate new organizations and claim to have started the application process with the securities regulator. The SFC noted that, effective of June 1st, these new businesses might not always follow the legal and regulatory criteria outlined in its recently approved guidelines.
It emphasized the need of adhering to these laws and regulations as well as the created entities’ legal requirements to either seek SFC licenses or discontinue operating in Hong Kong. The SFC reaffirmed the fact that engaging in unlicensed activity inside the area is illegal.
Established Players Lead the Way
Hong Kong has begun giving licenses to some cryptocurrency companies, including key players in the market like HashKey and OSL, in recognition of the significance of establishing a secure and regulated environment for cryptocurrency trading.
These permits give the platforms the ability to provide Hong Kong citizens with a variety of services relating to cryptocurrencies. According to the SFC’s regulatory framework, regulated cryptocurrency exchanges and service providers must provide secure asset custody and abide by strict rules like Know Your Customer, Anti-Money Laundering, and Combating the Financing of Terrorism standards.
Hong Kong’s regulatory authority is dedicated to maintaining market integrity and defending the interests of both investors and consumers as the cryptocurrency landscape changes.
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