Hong Kong Crypto Exchanges Struggle with Licensing Issues

user avatar

by Giorgi Kostiuk

2 years ago

Made with AI

  1. Licensing Challenges for Hong Kong Exchanges
  2. Violations and Risks
  3. Measures and Consequences


    4. Crypto exchanges in Hong Kong are facing challenges in securing full licenses as regulators tighten controls and address multiple violations.

    Licensing Challenges for Hong Kong Exchanges

    According to a Bloomberg report, crypto exchanges in Hong Kong are struggling to secure full licenses. The Hong Kong Securities and Futures Commission (SFC) identified unsatisfactory practices at 11 'deemed-to-be-licensed' exchanges, raising doubts about their ability to meet licensing requirements.

    Violations and Risks

    Inspections revealed that some exchanges were overly reliant on a small number of executives for client asset management, while others did not adequately guard against cybercrime risks. The exchanges under scrutiny include major players such as Crypto.com and Bullish as well as local trading platforms like HKbitEX and PantherTrade.

    Unsatisfactory practices in managing crypto assets have been found.Hong Kong Securities and Futures Commission (SFC)

    Measures and Consequences

    Currently, only two platforms — OSL and HashKey — hold full licenses in Hong Kong. Other platforms face increased scrutiny and requirements to protect client assets and follow robust 'know your client' protocols. This heightened oversight follows a scandal involving the unlicensed platform JPEX, accused of defrauding over $200 million. Due to regulatory requirements, 12 license applications have been withdrawn, including those from Bybit, Huobi HK, and OKX.

    Strict measures are aimed at ensuring complete security of client assets.SFC spokesperson

    The licensing challenges faced by crypto exchanges in Hong Kong highlight the importance of stringent regulation and compliance with security standards. Regulatory authorities continue to work on improving conditions for the safe operation of the crypto industry in the region.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Cardano's New Scaling Test Reveals Key Performance Metrics

A recent report by Input Output highlights the performance improvements of the Cardano scaling test, focusing on throughput and completion time.

user avatarSatoshi Nakamura

Crypto Market Declines Following Global Selloff

The crypto market faced a significant decline over the weekend, with Bitcoin falling 11%, Ethereum dropping 26%, and Solana decreasing by 28%, following a global market selloff.

user avatarNguyen Van Long

Cardano Developers Launch Public Test Network for Dijkstra Upgrade

Cardano developers have launched a public test network for the Dijkstra upgrade, enabling developers to test and prepare for new protocol rules.

user avatarJesper Sørensen

Tether Introduces New Framework to Enhance Bitcoin Mining Operations

Tether has announced a new initiative aimed at simplifying Bitcoin mining operations by integrating existing equipment through a common software framework.

user avatarRajesh Kumar

Electrum Wallet Vulnerability Could Lead to Unintended Payments

Electrum disclosed a vulnerability in its wallet that could lead to unintended payments due to a flaw in fee adjustments.

user avatarLucas Weissmann

US Household Inflation Expectations Increase Ahead of Federal Reserve Meeting

In October 2023, American households raised their inflation expectations to 4.7% for the next year and 3.5% for the long run, according to a survey by the University of Michigan.

user avatarFilippo Romano

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.