In this ongoing bullish sentiment across the cryptocurrency market digital assets like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and many others have experienced massive upside momentum. Amid this bullish sentiment, Hong Kong’s Securities and Futures Commission (SFC) has gained massive attention from investors and traders after issuing alerts against seven cryptocurrency trading platforms for operating illegally.
These 7 crypto exchanges set to be banned
According to the report, these exchanges are operating without having operational licenses. The SFC maintains public records of all registered, unregistered, and illegal crypto trading entities to minimize risks related to scams and fraud.
On July 5, 2024, the SFC updated its Alert List, which highlights unlicensed exchanges or those falsely claiming association with Hong Kong. The recent additions to the list include Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest.
Source: Hong Kong SFC
Since January 2020, the Alert List has grown to 39 entries, with 28 flagged in 2024 alone.
The SFC’s warnings indicate that these exchanges are suspected of fraudulent activities. They allegedly duped investors into believing they were registered with the SFC. Common tactics included blocking withdrawals and demanding fees to resume operations, a form of extortion.
Since early 2024, Hong Kong has aggressively pursued regulatory compliance for crypto trading services. The SFC mandated that all crypto exchanges apply for a license by May 31. Exchanges that failed to comply were required to shut down.
The exchange reapplied following the update
Following this update, more than 22 cryptocurrency exchanges applied for licenses to continue their operations in Hong Kong. Whereas, many chose to withdraw their applications just before the deadline.
In a bid to attract foreign investments, Hong Kong government entities recently visited a tech conference in Toronto, Canada. The event, conducted in partnership with the Hong Kong Economic and Trade Office in Toronto (Toronto ETO), Invest Hong Kong (InvestHK), and StartmeupHK (SMUHK), promoted Hong Kong’s offshore technology hub to Canadian crypto and Web3 startups.
Hong Kong’s efforts highlight its commitment to a well-regulated cryptocurrency market, ensuring investor protection and fostering a secure trading environment. The SFC’s actions serve as a reminder for crypto exchanges to adhere to regulatory requirements to operate legally within the region.