The Hong Kong Securities and Futures Commission (SFC) has identified seven unauthorized cryptocurrency exchanges and placed them on its Alert list for conducting unauthorized activities in the region without obtaining the required licenses.
Hong Kong SFC’s Alert List
This public record, also known as the Alert list, has been maintained since January 2020. On July 5, seven unlicensed crypto exchanges were added, bringing the total to 39 entries, with 28 unlicensed crypto exchanges flagged this year alone.
The Hong Kong SFC is in charge of the public record that contains all registered, unregistered, and unlicensed crypto exchanges in the region.
The seven unlicensed crypto exchanges include Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest.
These unlicensed crypto exchanges are suspected of engaging in fraudulent activities and compromising the safety of investors in line with their registration status with the SFC.
Earlier this year, the SFC advised all crypto exchanges to apply for operational licenses as part of Hong Kong’s broader plan to assume the position of a regulated crypto hub.
The SFC released a regulatory deadline for crypto license applications that elapsed on May 31. Over 22 exchanges submitted their applications, while some others decided to opt out just before the cutoff date.
On May 14, just a few weeks before the deadline, HTX withdrew its Hong Kong application for the second time. Also, in May, Gate.io suspended its crypto licensing application in Hong Kong.
Hong Kong Is Determined to Ensure Crypto Regulatory Compliance
Since early 2024, Hong Kong has demonstrated a strong commitment to enforcing regulatory compliance in the crypto trading sector. The region has taken decisive measures to achieve this goal.
The Hong Kong Securities and Futures Commission (SFC) took swift action, mandating the closure of unlicensed crypto exchanges that failed to submit license applications by the specified deadline.
At the same time, the HK government has implemented initiatives to bolster the region’s appeal as a premier hub for crypto and technology investments, fostering a favorable environment for innovation and growth.
In addition, government officials have been actively courting foreign investment, attending conferences, and showcasing Hong Kong’s offshore technology hub to Web3 entrepreneurs.
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