The Securities and Futures Commission of Hong Kong (SFC) has issued a warning about a suspicious trading platform called HKCEXP, which claims to be registered with the regulator.
To ensure compliance with regulations, the SFC had set a deadline of February 29 for cryptocurrency exchanges to apply for an operational license. Failure to submit the license application would result in the need to cease operations in Hong Kong by May 31.
The SFC received license applications from 22 crypto trading platforms, including four exchanges that had previously applied under the SFC’s opt-in regime for crypto trading platforms.
Despite the SFC’s efforts to inform the public, Hong Kong still faces challenges in dealing with fake entities posing as legitimate crypto exchanges. The latest case involves HKCEXP, which falsely claimed to be an “SFC-registered business” to attract investors.
The SFC has accused HKCEXP of providing a fake Hong Kong address for registration. One victim reported that the crypto exchange charged excessive fees for fund withdrawals.
As a means of raising awareness for safe crypto trading, the SFC will maintain a public list of crypto platforms that have received operational licenses.
Crypto exchanges that failed to apply for license registration are subject to limited operational capability and are prohibited from engaging in marketing activities in Hong Kong.
In a related development, the SFC recently issued a warning about an imposter crypto exchange posing as MEXC.
Earlier in March, the SFC discovered and blocked several fake websites impersonating well-known local cryptocurrency exchanges. These online perpetrators created multiple fake domains to impersonate two licensed exchanges in Hong Kong, namely OSL Digital Securities and Hash Blockchain Limited (also known as HashKey).
The SFC has advised investors to verify trading platforms using its public register of licensed individuals and registered institutions, as well as the list of licensed virtual asset trading platforms for relevant information about licensed entities and their official websites.
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