Hong Kong Regulator Issues Alert Against Suspicious Crypto Platform HKCEXP
The Securities and Futures Commission of Hong Kong (SFC) has issued a warning regarding HKCEXP, an allegedly suspicious crypto trading platform claiming to be registered with the regulator.
HKCEXP allegedly warned as it lured investors by falsely claiming to be an “SFC-registered business.”
In June 2023, Hong Kong officially started its crypto licensing regime for virtual asset trading platforms, allowing licensed exchanges to offer retail trading services.
The SFC said in February that investors should only trade on licensed trading platforms. The regulator had set a deadline of February 29 for crypto exchanges to apply for operational licenses. Exchanges failing to submit their applications were required to cease operations in Hong Kong by May 31 .
The SFC advised investors to act swiftly if they trade on platforms that do not appear on either the “list of licensed virtual asset trading platforms” or the “list of virtual asset trading platform applicants.” The regulator urged these investors to “make preparations early,” such as by closing their accounts.
Among the 22 crypto trading platforms that applied for licenses, four had previously opted into the SFC’s regulatory framework for crypto trading platforms.
Despite the SFC’s efforts to disseminate information, Hong Kong continues to be faced with fake entities posing as legitimate crypto exchanges. The regulator warns of HKCEXP, the latest crypto exchange falsely claiming to be registered with the regulator.
The SFC accused HKCEXP of providing a fraudulent Hong Kong address for registration. Additionally, one Hong Kong citizen who had used the platform reported to the SFC that the exchange imposed excessive fees for fund withdrawals.
The SFC will maintain
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