The Hong Kong Securities and Futures Commission (SFC) mandated that virtual asset investors only invest through licensed exchanges. The SFC said all crypto exchanges in Hong Kong must apply for or obtain a VATP license by February 29.
Hong Kong’s securities regulator warned investors to invest only through licensed exchanges. The SFC issued a mandate stating all crypto exchanges operating in Hong Kong must apply for or obtain a Virtual Asset Trading Platform (VATP) license on 29 February.
Investor Accounts on Unlicensed Exchanges to be Closed by May 31
The Hong Kong Securities and Futures Commission (SFC) notified digital asset investors to only invest through licensed exchanges. The SFC issued the notice ahead of the February 29 deadline when all crypto exchanges in Hong Kong must obtain or apply for a VATP license.
In the notice, the SFC said if investors are uncertain of the regulatory status of the exchange they are using, they need to determine whether the platform is on the regulator’s list of virtual asset trading platforms.
“In particular, investors should check whether a VATP is on the “List of licensed virtual asset trading platforms” or on the “List of virtual asset trading platform applicants”. VATPs on the “List of licensed virtual asset trading platforms” are formally licensed by the SFC. VATPs on the “List of virtual asset trading platform applicants” include VATPs operating in Hong Kong which have submitted licence applications to the SFC on or before 29 February 2024.”
The SFC added investors should continually watch the regulatory status of a VATP, especially on March 1. VATPs operating in Hong Kong that have not applied for or obtained a VATP license by February 29 “MUST” shut down their operations by May 31, 2024.
The regulator added:
“For investors dealing with VATPs operating in Hong Kong which are NOT on the “List of licensed virtual asset trading platforms” or on the “List of virtual asset trading platform applicants” (Note 3), they are urged to make preparations early, before 31 May 2024, such as by closing their accounts with these VATPs or transferring to SFC-licensed VATPs for trading virtual assets.”
Licensed Virtual Asset Providers
As it stands, only two VASPs are licensed by the SFC, including OSL Exchange and HashKey Exchange. OSL obtained its license in 2020, while HashKey acquired it in 2022. The SFC also provides a list of VASP applicants.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2024/02/hong-kong-sfc-warns-crypto-exchanges-to-comply-by-end-of-february