The Securities and Futures Commission of Hong Kong (SFC) has issued alerts against seven crypto trading platforms for operating illegally without the required licenses.
The Hong Kong SFC keeps public records of all registered, unregistered, and illegal crypto trading entities to reduce risks of scams and fraud. The Alert List highlights exchanges that are either unlicensed or falsely associated with Hong Kong. On July 5, seven new exchanges were added to this list.
Hong Kong SFC’s Alert List
Since its inception in January 2020, the alert list has grown to 39 entries. In 2024 alone, 28 cryptocurrency exchanges were flagged. The most recent additions are Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest.
According to the warnings, these exchanges are suspected of engaging in fraudulent activities, misleading investors into believing they were registered with the SFC. Many of these platforms used extortion techniques, such as blocking withdrawals and demanding “fees” to resume operations.
Hong Kong’s Regulatory Compliance Efforts
Since early 2024, Hong Kong has taken strong measures to ensure regulatory compliance among crypto trading services. The SFC required all crypto exchanges to apply for a license by May 31. After this deadline, exchanges that failed to apply were legally required to shut down.
During this period, over 22 cryptocurrency exchanges applied for licenses to maintain their presence in the region. However, many decided to withdraw their applications just before the deadline.
Promoting Crypto and Web3 in Canada
Recently, Hong Kong government entities visited a tech conference in Toronto, Canada, to promote its offshore technology hub for Canadian crypto and Web3 startups. This event was organized in partnership with the Hong Kong Economic and Trade Office in Toronto, Invest Hong Kong, and StartmeupHK.
