SFC Flags Suspicious Crypto Platform HKCEXP Amid Licensing Clampdown in Hong Kong
Summary:
Hong Kong's Securities and Futures Commission (SFC) has flagged HKCEXP as a suspicious trading platform, falsely claiming association with the regulator. The SFC had mandated crypto exchanges to register for operational licenses by Feb 29, with non-compliant ones ordered to halt operations by May 31. The authority received 22 applications for licensure, but continues to face challenges with deceitful entities posing as genuine crypto exchanges. A victim has accused HKCEXP of levying excessive withdrawal fees. The SFC urges investors to verify trading platforms using its public register.
The Hong Kong Securities and Futures Commission (SFC) has raised a red flag against HKCEXP, citing it as a questionable trading platform falsely claiming registratory links to the regulatory authority. The SFC had previously established a Feb 29 deadline for digital currency exchanges to lodge their applications for operational licensing. Those failing to comply with this requirement were mandated to formally close their operations in Hong Kong by May 31. The disclosure regarding the closure of crypto license applications was officially made public by the Hong Kong SFC.
The SFC received a total of 22 licensure applications from cryptocurrency trading platforms, which included four platforms appealing under the SFC’s preceding optional scheme for such platforms. Despite these efforts of public disclosure, the struggle against deceptive entities masquerading as genuine crypto exchanges continues. The most recent case involves HKCEXP, accused of enticing investors through false claims of being an “SFC authorized entity”.
The SFC added HKCEXP to its list of disreputable crypto trading platforms on the grounds of supplying fictitious Hong Kong registration information. A victim lodged a complaint with the SFC about the platform's exorbitant withdrawal fees. As a public awareness strategy, the SFC pledges to maintain a list of licensed crypto platforms. Exchanges failing to register will experience reduced operational functions and will be restricted from any promotional activities in Hong Kong.
In March, the SFC successfully halted several fraudulent websites attempting to impersonate established local crypto exchanges. The offenders had devised multiple forged domains, simulating two licensed Hong Kong exchanges, OSL Digital Securities and Hash Blockchain Limited (also known as HashKey).
The SFC encourages investors to underpin their trading activities by consulting its register of licensed individuals and establishments, and the list of authorized virtual asset trading platforms for critical information regarding legally operating entities and their official websites.
Published At
3/25/2024 3:05:28 PM
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