Hong Kong continues to ban fraudulent, unregistered crypto exchanges

Hong Kong continues its efforts to regulate crypto exchanges and crack down on fraud and unregistered people in China’s Special Administrative Region (SAR). The cryptocurrency market, currently valued at $2.60 trillion (roughly Rs. 2,16,86,900 crore), has attracted both legitimate entrepreneurs and unscrupulous groups from around the world in recent years. New crypto exchanges have proliferated globally, making it difficult for investors to know whether these platforms are genuine or designed to defraud users. Hong Kong aims to ensure that all exchanges operating within the region are legitimate and registered with the relevant authorities.

Hong Kong’s Securities and Futures Commission (SFC) recently Reminded Current Crypto exchanges Operating in the region that the deadline to apply for a government operational license has passed. After May 31, Hong Kong will not allow crypto businesses to continue without this permission.

A total of 22 crypto trading platforms Hong Kong Applications for this license have been made in recent months. According to CoinTelegraph, these include Hing Kong BGE Limited, Victory Fintech Company Limited, and DFX Labs. Reports.

In the wake of authorities’ increased oversight of crypto exchanges, the SFC has expressed its concerns with one particular platform — HKCEXP. Authorities have warned people against connecting to the platform as it is suspected to be part of an ongoing crypto fraud.

HKCEP allegedly misled investors by falsely claiming to be registered with the SFC, the Commission. described in a press release on Monday.

The SFC blocked several non-compliant crypto platforms in March. In order to keep its citizens informed about the licensed platforms, Hong Kong has decided to maintain this list. on its website.

Government of India also involved in Similar measures to protect its investor community from scams and financial theft. In December 2023, the Financial Intelligence Unit India (FIU) issued show-cause notices to nine offshore companies asking them to prove that they were complying with all Indian laws. These firms include Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex.

In India, all crypto-related firms are required to follow the Anti-Money Laundering and Counter-Financing of Terrorism (AML-CFT) framework. Both these laws come under the provisions of the Prevention of Money Laundering Act (PMLA).

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