According to Techub News, Bloomberg quoted people familiar with the matter as saying that the Hong Kong Securities and Futures Commission found insufficient supervision after conducting on-site inspections of the offices of virtual asset trading platforms.

People familiar with the matter said that some cryptocurrency companies rely too much on a few senior executives to oversee the custody of customer assets, while other companies have not taken appropriate measures to prevent cybercrime risks. It is not clear which companies have failed to meet the requirements of the CSRC.

The on-site inspection is still ongoing. A spokesperson for the Hong Kong Securities and Futures Commission said that it would not comment on specific cases, but the inspection is to determine whether the applicant complies with its requirements, with particular attention paid to the applicant's protection of customer assets and KYC procedures. For platforms that are unable to correct the serious defects found in the on-site inspection, the Hong Kong Securities and Futures Commission may choose to cancel their deemed licensed status or reject their license applications.