SFC Advises Diligence in Crypto Investments
The Hong Kong Securities and Futures Commission (SFC) persistently exhorts investors to exercise due diligence on crypto platforms through its website.
Huobi’s Withdrawal
- Huobi HK discontinued its application just three days after submission on February 23.
- The application was submitted under its local entity, HBHL Hong Kong Limited.
- Two other crypto exchanges, Amber and BitHarbour, also recently withdrew their licenses.
SFC’s Stance on Crypto Regulation
The SFC has recently emphasized the significance of trading through licensed exchanges. Investors are urged to regularly verify the regulatory status of their platforms.
SFC’s Renewed Regulatory Efforts
- In January 30, OSL, one of the two approved crypto exchanges in Hong Kong, reported lowered mandated insurance coverage on digital assets to 50%.
- The SFC has broadened its purview to include over-the-counter (OTC) crypto products, intending to subject them to similar regulations as other crypto exchanges or products.
OTC Crypto Trade Regulation
The proposal is open for public consultation, driven by concerns over anti-money laundering measures. OTC trading currently lacks the stringent requirements imposed on regular crypto exchanges.
Author: Emily Carter
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