The Securities and Futures Commission (SFC), Hong Kong’s securities regulatory body, has announced its intention to disclose a comprehensive list of applicants seeking licenses for cryptocurrency exchanges.
“The JPEX incident underscores the inherent risks associated with unregulated virtual asset trading platforms (VATPs) and underscores the imperative need for robust regulatory oversight to maintain market trust,” the SFC stated in a press release on Monday.
“Furthermore, it highlights the potential for strengthening information dissemination to the investing public through the Alert List, advisory notices, and investor education efforts to enhance awareness among investors regarding the potential risks posed by dubious websites or VATPs.”
The development comes in the wake of the JPEX investigation, which has led to numerous arrests in Hong Kong.
Last week, Hong Kong’s Chief Executive, John Lee, stressed the importance of cryptocurrency platforms obtaining SFC licenses to safeguard the interests of investors. “We are committed to intensifying public education initiatives to ensure investors are well-informed about the associated risks,” he remarked during that period.
As of now, only two companies, OSL Digital Securities Limited and Hash Blockchain Limited, have been granted cryptocurrency exchange licenses in Hong Kong. According to the South China Morning Post (SCMP), four other firms—namely HKVAX, HKBitEx, Hong Kong BGE Limited, and Victory Fintech Company Limited—have submitted license applications. However, these entities are relatively small and less recognized. Many prominent cryptocurrency exchanges have yet to express their intentions to seek licensing within the jurisdiction of Hong Kong.
