Hong Kong's Securities and Futures Commission (SFC) announced on February 28 that cryptocurrency exchanges operating without permission in the special zone will have to stop operating before May 31, when the deadline for filing applications is due. Registration will expire on February 29.

The SFC's move aims to strengthen investor protection and maintain financial market order in the digital era. Previously, this agency licensed two cryptocurrency exchanges, OSL Digital Securities and HashKey Exchange. They are currently reviewing applications from 22 other candidates.

ThĂŽng bĂĄo do SFC Hồng KĂŽng đưa ra về việc đóng cĂĄc ứng dỄng cáș„p phĂ©p sĂ n giao dịch. Nguồn: sfc.hk

According to the announcement, SFC recommends that investors need to transfer their assets to legally licensed platforms. At the same time, it warned about publicizing the list of exchanges that will have to close and advised people to stay away from these platforms to minimize risks.

Danh sĂĄch cĂĄc sĂ n giao dịch tiền mĂŁ hoĂĄ đã nộp Ä‘ÆĄn xin giáș„y phĂ©p hoáșĄt động táșĄi Hồng KĂŽng. Nguồn: sfc.hk

In the meantime, Hong Kong will restrict the operations of unregistered exchanges and block all marketing activities. SFC will also publish a list of licensed exchanges from June 1, 2024 so that users can stay informed.

Previously, Hong Kong leader John Lee pledged to increase cooperation with regulators to deal with the growing problem of fraud in the operations of unlicensed cryptocurrency exchanges.

The commitment was made after an investigation into Hounax, an unlicensed platform that defrauded many investors with a total loss of up to 148 million Hong Kong USD. The Hounax case is closely related to the JPEX exchange case in September, which resulted in six people being arrested, with a total loss of 128 million USD.