Hong Kong’s SFC Takes Action: Lists of Unregulated Crypto Platforms to be Released Soon

Hong Kong’s Securities and Futures Commission (SFC) is gearing up to release lists detailing various Virtual Asset Trading Platforms (VATPs). This action is in response to growing concerns over unregulated trading platforms that have recently taken center stage.

Regulating Digital Finance

Hong Kong’s SFC has always been in tune with the advancements in digital finance. They have observed the potential of technologies behind virtual asset activities and their implications on financial markets. However, this keen interest doesn’t mean they’ve turned a blind eye to the risks.

From decentralization to money laundering and issues related to investor protection, the SFC has been cognizant of the challenges digital finance presents. The SFC pioneered a regulatory framework for a broad spectrum of virtual asset activities back in 2017.

SFC’s Dual Approach

Constantly on the lookout for potential infringements, the SFC utilizes various information channels, including media reports, industry dialogue, and public feedback. In partnership with its subsidiary, the Investor and Financial Education Council (IFEC), they are doubling on initiatives to inform investors about the potential pitfalls of trading on unregulated platforms.

Upcoming Protective Measures

To ensure that the public is kept informed, the SFC has outlined the introduction of several VATP lists, including a list of licensed VATPs and a list of mandated closing-down VATPs. List of deemed licensed VATPs effective from June 2024 and showcasing VATP applicants in response to public interest.

In addition to these lists, the SFC plans to highlight suspicious VATPs, giving them prominence on their official website. This is to make information readily available to the public clearly and transparently.

The SFC and IFEC are launching a comprehensive campaign across multiple channels, including social media, to shield the public from potential fraud further. The primary goal is to enhance public knowledge regarding the risks inherent in virtual assets and possible deceptive practices.