After the JPEX incident, the Hong Kong Securities and Futures Commission (SFC) exposed suspicious platforms to improve the transparency of virtual asset trading platform license applications. Recently, the Hong Kong Securities and Futures Commission (SFC) named three more "suspicious virtual asset trading platforms" on its official website. So far, the Hong Kong Securities and Futures Commission has named a total of 9 suspicious virtual asset trading platforms on its official website.
It is understood that the three suspicious platforms named are BitCuped, HOUNAX and Hong Kong Digital Research Institute (hkdao). The Hong Kong Securities Regulatory Commission pointed out that these platforms claim to be associated with Hong Kong or target Hong Kong investors, but they are not licensed in Hong Kong.
BitCuped claims to be located in Central, Hong Kong, calling itself a virtual currency trading platform and impersonating the management of the Hong Kong Stock Exchange. However, the establishment time given on the platform's website is consistent with the spelling of the current CEO and chairman of the Hong Kong Stock Exchange, which aroused suspicion.
HOUNAX claims to be a cryptocurrency trading platform that cooperates with financial institutions and venture capital firms, but this is not the case. The company seems to be targeting Hong Kong investors and claims that its investors include well-known institutions such as Coinbase, Sequoia Capital, Goldman Sachs and IDG. Hong Kong Digital Research Institute (HKDAO) has also been included in the list of suspicious virtual asset trading platforms. The company claims to have obtained a license from the Hong Kong Securities and Futures Commission, but this is not the case. The Hong Kong Securities and Futures Commission also stated that the "reminder list" published on the official website may not be comprehensive. The Hong Kong Securities and Futures Commission will continue to supplement the newly discovered suspicious platforms and invite the public to actively participate: if the public is contacted by an unlicensed company, they can fill out an online complaint form.
The Hong Kong Securities and Futures Commission said that the list of suspicious platforms published on the official website may not be comprehensive, and they will continue to add newly discovered suspicious platforms. They also encourage the public to actively participate. If anyone comes into contact with an unlicensed company, they can fill in the online complaint form.
In fact, exposing suspicious platforms is a new measure taken by the Hong Kong Securities and Futures Commission to regulate virtual asset trading after the JPEX incident. In order to protect the legitimate rights and interests of investors, the Hong Kong Securities and Futures Commission began to publish multiple lists of virtual asset platforms on its website, including: a list of licensed platforms; a list of applicants for virtual asset trading platforms; a list of applicants whose license applications have been returned, rejected or withdrawn; a list of closed platforms; and a list of platforms that are considered to have been licensed.
First, the “Licensed Platform List” lists the names of virtual asset trading platform operators that have been officially licensed by the SFC. Currently, the list still only includes two companies, namely OSL Digital Securities Co., Ltd. and Hash Blockchain Limited.
Secondly, the “Applicant List” lists “virtual asset trading platform operators” that have submitted license applications. As of now, there are 7 platforms on this list. However, the virtual asset trading platform operators on this list will not necessarily be issued a license in the end.
Third, there is a list of applicants whose license applications have been returned, rejected or withdrawn. These applicants may be moved to this list because their applications are incomplete or there are major issues. Currently there is one institution on this list.
Fourth, the “List of Closed Platforms” lists the names of virtual asset trading platform operators that must close within a specified period of time in accordance with anti-money laundering regulations. As of now, there are no relevant companies on this list of the CSRC.
Finally, the "List of Virtual Asset Trading Platforms Considered to be Licensed" lists the names of virtual asset trading platform operators that were deemed to be licensed before June 1, 2024, that is, the names of virtual asset trading platforms that enjoy the "transition period". At present, there are no relevant platforms on the list on the SFC website. In addition to the above list, the Hong Kong SFC also published a list of "suspicious virtual asset trading platforms", and the three suspicious platforms mentioned above are on this list.
Summarize
The original intention of the Hong Kong government to formulate virtual asset regulatory regulations is to provide a regulated channel for virtual assets, and to protect the safety of investors as much as possible while developing virtual asset businesses. Before the implementation of the "transparency of application lists", the public did not know the true licensing status of each platform in a short period of time, and lacked awareness of platforms with illegal and suspicious behaviors. This is why the Hong Kong Securities and Futures Commission, which discovered the problem, was able to respond so quickly. However, some industry insiders also said that suspicious platforms may be hiding in every corner of the Internet, and investor protection for virtual asset trading platforms is indeed a long way to go.