The Hong Kong Securities and Futures Commission recommends further restrictions on the use of misleading names to enhance investor protection

ChainCatcher news, the Hong Kong Securities and Futures Commission today launched a consultation aimed at restricting unregulated entities from improperly adopting names that lead the public to mistakenly believe they are regulated entities. In this regard, to align with recent developments, the SFC proposes to expand the existing restricted title list under the Securities and Futures Ordinance.

In addition, the proposal will extend the scope of restrictions to commonly used terms that have a similar meaning to "exchange," as well as words that generally refer to certain financial products and platforms regulated under the Securities and Futures Ordinance. The proposal will also cover titles that may imply a connection with existing exchanges, virtual asset trading platforms, and other similar entities.