Global: Hong Kong Flags 7 Unregulated Crypto Exchanges for Noncompliance

The Securities and Futures Commission of Hong Kong (SFC) has issued alerts against seven cryptocurrency trading platforms for operating illegally in the region without the necessary licenses.

The Hong Kong SFC manages a public registry of all registered, unregistered, and illegal crypto trading entities to mitigate risks associated with scams and fraud. The Alert List, which identifies exchanges that are either unlicensed or falsely claim an association with Hong Kong, was updated on July 5 to include seven new entries.

For Hong Kong Investors’ Safety

The SFC has been maintaining the Alert List since January 2020, which now includes 39 entries. In 2024 alone, 28 cryptocurrency exchanges were flagged. The latest additions to the list are Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest.

According to the warnings, these exchanges are suspected of engaging in fraudulent activities, deceiving investors into believing they were registered with the SFC. Many of these platforms employed extortion tactics, such as blocking withdrawals and demanding “fees” to resume operations.

Hong Kong’s Efforts to Regulate Crypto Trading Services

Since early 2024, Hong Kong has taken stringent measures to ensure the regulatory compliance of crypto trading services within the region. The SFC mandated that all crypto exchanges apply for a license by May 31.

Following the deadline, any cryptocurrency exchange that failed to apply for an operational license was legally required to cease operations. During this period, more than 22 cryptocurrency exchanges applied for licenses to continue their operations in Hong Kong. However, many opted to withdraw their applications just before the deadline.

In a bid to attract foreign investments, Hong Kong government entities recently attended a tech conference in Toronto, Canada. The event aimed to promote Hong Kong’s offshore-ready technology hub for Canadian crypto and Web3 startups. The conference was organized in collaboration with the Hong Kong Economic and Trade Office in Toronto (Toronto ETO), Invest Hong Kong (InvestHK), and StartmeupHK (SMUHK).