Within the wake of the unfolding JPEX trade saga, the Hong Kong Securities and Futures Fee (SFC) launched a blacklist of cryptocurrency companies termed as unregulated and unlicensed.
Hong Kong’s SFC pledges to accentuate investor training and knowledge dissemination initiatives, responding to rising public apprehensions regarding unregulated Digital Asset Buying and selling Platforms (VATPs).
SFC Blacklists Crypto Corporations
The ombudsman’s new announcement of blacklisted crypto exchanges follows the latest high-profile JPEX scandal – probably the most vital fraud instances in Hong Kong. The JPEX crypto trade, which illegally operated within the area, was pressured to close down lately with a monetary lack of $182 million, affecting over 2,200 buyers.
The SFC’s blacklist incorporates different suspicious crypto platforms, together with HKVAX, HKBitEx, Hong Kong BGE, and Victory, that are suspected of fraudulent actions. In line with the reviews, all these networks operated unlicensed and unregulated; therefore, the SFC warned buyers of the potential dangers of participating with them.
In mild of the JPEX saga, the SFC additionally dedicated to publicizing the listing of accepted and licensed crypto tasks, mentioning these with pending functions, as they intend to supply buyers with a secure buying and selling surroundings.
SFC’s CEO, Leung Fung-yee, famous that the initiative would allow buyers to keep away from unregulated platforms working in Hong Kong.
As per the discharge, SFC’s latest energy to supervise VATPs whereas guaranteeing stringent governance measures is all courtesy of the lately carried out Anti-Cash Laundering and Counter-Terrorist Financing Ordinance (Cap. 615) (AMLO).
The SFC will keep an unique listing of unreliable platforms alongside the licensed ones, making this data obtainable on its web site in a mission to bolster transparency and assist in investor decision-making.
Emphasis on Training and Info Sharing
Whereas saying the listing of blacklisted tasks, the SFC’s launch underscored the relevance of intensifying investor training and knowledge sharing.
The SFC believes that though there are perils like cash laundering related to VATPs, there are compelling advantages introduced forth by the applied sciences underlying these digital finance and digital asset (VA) actions.
The SFC introduced a collaboration with IFEC, launching a public marketing campaign to encourage vigilance towards fraud whereas rushing investor training throughout varied channels like social media, mass media, and academic talks. Furthermore, the watchdog will strengthen its processes of gathering intelligence and imposing actions.
As per the discharge, the watchdog can be exploring the thought of collaborating with the police in info sharing about VATP-related suspicious actions. The discharge stresses SFC’s mission of securing property, stopping market manipulation and abusive actions, and avoiding conflicts of curiosity, thereby assuring buyers’ safety.
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