A one-year grace interval for cryptocurrency exchanges working in Hong Kong will stay in place regardless of current scandals.
In accordance with native information studies on Nov. 27, Julia Leung, Hong Kong’s Beneath Secretary for Monetary Companies and the Treasury, said, “Even when the grace interval ends tomorrow, fraud will nonetheless happen, so there is no such thing as a intention to change the grace interval and different measures in the interim.”
As per new rules launched in June, crypto exchanges working in Hong Kong should apply for a Digital Asset Service Supplier (VASP) license with town’s Securities & Futures Fee by June 2024 or face deregistration. Nevertheless, unregistered exchanges can function within the metropolis in the course of the interim transition interval.
A number of crypto scandals have rocked the particular administrative area lately. In September, Hong Kong crypto trade JPEX, which was unlicensed on the time, collapsed after allegations of a Ponzi scheme that led to 66 arrests and an estimated 1.6 billion Hong Kong {dollars} ($205 million) in losses.
On Nov. 25, Hounax, one other unlicensed crypto trade working in Hong Kong, reportedly scammed 131 residents out of 120 million Hong Kong {dollars} ($15.4 million) via yet one more alleged Ponzi scheme. Chan Waikei, superintendent of the Hong Kong Police’s industrial crime bureau, defined that scammers impersonated funding consultants and solicited customers with the promise of excessive returns. When customers later tried to withdraw the funds, they may not accomplish that.
On Nov. 27, Cointelegraph reported that the Binance-linked HKVAEX trade continues to be attempting to use for a license in Hong Kong. Earlier this month, BC Know-how Group, proprietor of Hong Kong crypto trade OSL, secured a $90M funding from blockchain agency BGX.
Associated: Binance-linked HKVAEX nonetheless making ready to use for license in Hong Kong
