Hong Kong advises crypto investors to verify platform licenses prior to deadline

Hong Kong’s Securities and Futures Commission (SFC) has mandated that crypto trading platforms must apply for licenses by February 29 or face closure by May 31, in order to protect investors. In a notice issued on February 5, the SFC urges investors to verify the regulatory status of the platforms they use against the SFC’s published lists of licensed and applicant virtual asset trading platforms. The advisory encourages investors using unlisted platforms to take necessary actions, such as closing their accounts, to avoid potential risks. This directive follows the introduction of Hong Kong’s crypto licensing regime in June 2023, which has already granted licenses to two platforms, HashKey and OSL, allowing them to offer retail trading services. The SFC is currently evaluating applications from 14 crypto firms, including OKX and Bybit. HKVAEX, which is associated with Binance, has also applied for a license. This regulatory scrutiny is in line with the government’s broader strategy to regulate the crypto market. Christopher Hui, Secretary for Financial Services and the Treasury, has highlighted upcoming consultations on a regulatory framework for over-the-counter crypto trading due to increasing risks.