The Securities and Futures Fee (SFC) of Hong Kong issued a discover about unlicensed digital asset buying and selling platforms “participating in improper practices,” warning of potential legal fees.
In an Aug. 7 discover, the SFC stated sure buying and selling corporations had falsely claimed to have submitted functions for licenses in Hong Kong. The securities regulator stated ought to the businesses really apply to function legally within the particular administrative area, it will contemplate any false statements in addition to attainable legal fees.
Based on the SFC, some unlicensed crypto buying and selling platforms in Hong Kong arrange new entities, claiming to have submitted functions to the securities regulator. Nonetheless, “the providers and merchandise provided by a few of these new entities will not be in compliance with the authorized and regulatory necessities” beneath the SFC’s guidelines that turned efficient as of June 1.
“These established entities can even want to use for SFC licences or they need to proceed to shut their enterprise in Hong Kong,” stated the monetary watchdog. “Conducting unlicensed actions in Hong Kong is a legal offence.”
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Sure crypto corporations, together with HashKey and OSL, have obtained licenses beneath the SFC’s regime, permitting the platforms to supply quite a lot of crypto providers to Hong Kong residents. The licensing regime requires crypto exchanges and repair suppliers to make sure secure custody of property in addition to observe Know Your Buyer, Anti-Cash Laundering and Combatting the Financing of Terrorism guidelines, amongst others.
