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Hong Kong SFC Warning on HKCEXP
The Securities and Futures Commission of Hong Kong (SFC) has raised concerns about HKCEXP, a crypto trading platform allegedly falsely claiming registration with the regulator. Investors were lured in by the platform’s misleading claims of being an “SFC-registered business.”
Regulatory Developments in Hong Kong
In June 2023, Hong Kong introduced a licensing regime for virtual asset trading platforms, permitting licensed exchanges to provide retail trading services. The SFC emphasized the importance of trading only on licensed platforms, setting a deadline for exchanges to apply for operational licenses.
HKCEXP Added to List of Suspicious Exchanges
Despite the SFC’s efforts, fake crypto exchanges like HKCEXP continue to pose risks to investors. The SFC accused HKCEXP of using a fraudulent Hong Kong address for registration and imposing excessive fees on users for fund withdrawals.
Major Crypto Exchanges Seeking Licensing
22 exchanges, including OKX, Bybit, and Crypto.com, submitted applications for licensing before the deadline. The SFC granted licenses to HashKey Exchange and OSL Digital Securities, with more platforms under review for trading approval.
BitForex Incident and Regulatory Compliance
BitForex faced issues with $57 million reportedly withdrawn from its hot wallets, leading to regulatory scrutiny for operating without proper registration. The SFC advises investors to verify platforms through its public register of licensed entities to ensure trading on legitimate exchanges.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
