SFC’s Guidelines on Approved Virtual Asset Trading Platforms in Hong Kong
Hong Kong’s Securities and Futures Commission (SFC) has reiterated the necessity for crypto investors to exclusively utilize approved virtual asset trading platforms (VATP).
In a statement issued on February 5, 2024, the SFC emphasized the vital importance of confirming a VATP’s regulatory status before engaging in transactions. The SFC’s recent caution follows its previous call for users to avoid unlicensed operators, noting that many lacked a realistic chance of obtaining a license.
The regulator urged investors to closely scrutinize the two lists, distinguishing licensed entities from those awaiting approval. Entities operating as VATPs must cease operations by May 31 if they fail to submit license applications by February 29. Additionally, the SFC encouraged users on unlisted platforms to close their accounts or transfer funds to licensed entities. The SFC emphasized the risk associated with trading on platforms awaiting approval, concluding that unapproved VATPs offer zero protection to users.
Clever Robot News Desk 7th February 2024