Hong Kong Securities and Futures Commission: Engaging in any unlicensed activities by virtual asset trading platforms is a criminal offense

ChainCatcher news, the Hong Kong Securities and Futures Commission (SFC) has issued a reminder to industry participants and investors that the deadline for virtual asset trading platforms to submit license applications to the SFC to continue operating in Hong Kong on or after June 1, 2024 (i.e., February 29, 2024) has ended.

Therefore, according to the transitional arrangements, any virtual asset trading platform operating in Hong Kong that has not submitted a license application to the SFC by the deadline of February 29, 2024, must cease its business in Hong Kong on or before May 31, 2024.

These virtual asset trading platforms must obtain the necessary SFC licenses to resume their business activities in Hong Kong or actively promote their virtual asset services to Hong Kong investors; engaging in any unlicensed activities is a criminal offense.

Meanwhile, investors should use the list of virtual asset trading platforms on the SFC website to verify the regulatory status of virtual asset trading platforms. If the virtual asset trading platform used by investors for buying and selling operates in Hong Kong but is not on the "Licensed Virtual Asset Trading Platforms List" or the "Virtual Asset Trading Platform Applicants List," they should close their accounts on these platforms or transfer to a licensed virtual asset trading platform to buy and sell virtual assets. However, the SFC reminds the public that applications submitted by applicants on the "Virtual Asset Trading Platform Applicants List" are still under processing, and whether they will be approved is uncertain.

Therefore, trading on these platforms carries risks. For this reason, the SFC strongly urges investors to only trade virtual assets on licensed virtual asset trading platforms, as trading on unlicensed platforms may leave them unprotected.