The Securities and Futures Commission of Hong Kong (SFC) issued alerts against seven crypto trading platforms for illegally operating in the region without operational licenses.

The Hong Kong SFC manages public records of all registered, unregistered and illegal crypto trading entities to reduce risks related to scams and fraud. The Alert List, which highlights exchanges that are either unlicensed or display false association with Hong Kong, saw the addition of seven exchanges on July 5.

A list of entities that have come to the attention of the Hong Kong SFC. Source: Hong Kong SFC

For Hong Kong investors' safety

The Hong Kong SFC has been maintaining the alert list since January 2020 and it currently has 39 entries. In 2024 alone, 28 cryptocurrency exchanges were flagged. The most recent additions to the list include Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest.

According to the warnings, all exchanges are suspected of engaging in fraudulent activities and duping investors into believing they were registered with the SFC. Most of these exchanges used extortion techniques, such as blocking withdrawals and demanding “fees” to resume operations.

Hong Kong attempts to regulate crypto trading services

Since early 2024, Hong Kong has taken aggressive steps to ensure regulatory compliance of crypto trading services in the region.

The Hong Kong SFC had asked all crypto exchanges to apply for a license by May 31.

Notice issued by the Hong Kong SFC about the closure of crypto license applications. Source: Hong Kong SFC

After the deadline, all cryptocurrency exchanges that failed to apply for an operational license were legally required to shut down.

During this period, while more than 22 cryptocurrency exchanges applied for licenses to maintain their presence in the region, many ultimately decided to withdraw their applications just before the deadline.

Hong Kong government entities dedicated to attracting foreign investments recently visited a tech conference in Toronto, Canada, to advertise its offshore ready-to-move technology hub for Canadian crypto and Web3 startups.

The event was conducted in partnership with ​the Hong Kong Economic and Trade Office in Toronto (Toronto ETO), Invest Hong Kong (InvestHK) and StartmeupHK (SMUHK).