{"id":20812,"date":"2023-08-07T18:52:32","date_gmt":"2023-08-07T18:52:32","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/hong-kong-securities-regulator-warns-of-criminal-activity-by-unlicensed-exchanges\/"},"modified":"2023-08-07T18:52:33","modified_gmt":"2023-08-07T18:52:33","slug":"hong-kong-securities-regulator-warns-of-criminal-activity-by-unlicensed-exchanges","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/hong-kong-securities-regulator-warns-of-criminal-activity-by-unlicensed-exchanges\/","title":{"rendered":"Hong Kong securities regulator warns of ‘criminal’ activity by unlicensed exchanges"},"content":{"rendered":"
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The Securities and Futures Commission (SFC) of Hong Kong issued a notice about unlicensed virtual asset trading platforms \u201cengaging in improper practices\u201d, warning of potential criminal charges.<\/p>\n

In an Aug. 7 notice, the SFC said certain trading firms had falsely claimed to have submitted applications for licenses in Hong Kong. The securities regulator said should the companies actually apply to operate legally in the special administrative region, it would consider any false statements as well as possible criminal charges.<\/p>\n

Aug. 7 notice from Hong Kong’s\u00a0Securities and Futures Commission. Source: Facebook<\/em><\/figcaption><\/figure>\n

According to the SFC, some unlicensed crypto trading platforms in Hong Kong set up new entities, claiming to have submitted applications to the securities regulator. However, \u201cthe services and products offered by some of these new entities may not be in compliance with the legal and regulatory requirements\u201d under the SFC\u2019s requirements effective as of June 1.<\/p>\n

\u201cThese established entities will also need to apply for SFC licences or they should proceed to close their business in Hong Kong,\u201d said the financial watchdog. \u201cConducting unlicensed activities in Hong Kong is a criminal offence.\u201d<\/p>\n

Related: <\/em><\/strong>Hong Kong would not go crypto without China\u2019s approval \u2014 Animoca exec<\/em><\/strong><\/p>\n

Certain crypto firms including HashKey and OSL have received licenses under the SFC\u2019s regime, allowing the platforms to offer a variety of crypto services to Hong Kong residents. The licensing regime requires crypto exchanges and service providers to ensure safe custody of assets as well as follow Know Your Customer, Anti-Money Laundering and Combatting the Financing of Terrorism rules, among others.<\/p>\n

Magazine: <\/em><\/strong>DeFi faces stress test, DoJ fears run on Binance, Hong Kong\u2019s crypto trading: Hodler\u2019s Digest, July 30 \u2013 Aug. 5<\/em><\/strong><\/p>\n