On November 6, Hong Kong’s Securities and Futures Commission (SFC) published its consultation conclusions, proposing to prohibit unlicensed firms from using names such as “crypto exchange” and “digital currency trading platform.” But the draft has not yet been submitted to the Legislative Council, and even after it is passed, it will take another six months to come into effect.
In other words, until the new rules take effect, a website can still call itself whatever kind of crypto exchange it wants.
The proposed restrictions are quite specific: combinations of “crypto,” “token” or “virtual asset” with “exchange,” “market” or “trading platform” are all covered. Even similar names such as “digital asset information exchange” appear in the examples in the SFC’s FAQ.
The SFC says there will be no transition period; it is simply pushing the effective date back by six months.
I think this is more like a countdown for fake platforms. For now, it’s no substitute for checking who you’re dealing with.
When using a platform in Hong Kong, no matter how much its name sounds like an exchange, check the list of licensed virtual asset trading platforms on the SFC website before transferring any coins. If it’s not on the list, stay away.
#港证监会拟限加密及交易所字眼 #Hong Kong
In other words, until the new rules take effect, a website can still call itself whatever kind of crypto exchange it wants.
The proposed restrictions are quite specific: combinations of “crypto,” “token” or “virtual asset” with “exchange,” “market” or “trading platform” are all covered. Even similar names such as “digital asset information exchange” appear in the examples in the SFC’s FAQ.
The SFC says there will be no transition period; it is simply pushing the effective date back by six months.
I think this is more like a countdown for fake platforms. For now, it’s no substitute for checking who you’re dealing with.
When using a platform in Hong Kong, no matter how much its name sounds like an exchange, check the list of licensed virtual asset trading platforms on the SFC website before transferring any coins. If it’s not on the list, stay away.
#港证监会拟限加密及交易所字眼 #Hong Kong