The Hong Kong securities regulator has said it now publishes a list of firms seeking to operate crypto trading platforms in the region. Julia Leung Fung-yee, the CEO of the Securities and Futures Commission (SFC), said divulging the names of applicants is intended to help placate an investing public recently ruffled by the Jpex incident.

Pacifying Hong Kong Crypto Users

Hong Kong’s securities regulator has said it will now reveal the names of companies seeking to run crypto platforms that target retailers from the region. Julia Leung Fung-yee, the CEO of the Securities and Futures Commission (SFC), reportedly said the decision was made to pacify the public.

According to a report in the South China Morning Post, the regulator’s decision is viewed as a departure from the regulator’s longstanding stance of not divulging the applicants’ names. The announcement of the changes came just a few days after the crypto exchange Jpex was forced to halt operations.

At the time, a Bitcoin.com News report said the trading halt was then followed by the arrests of multiple people and greater scrutiny of the region’s crypto sector. In a subsequent statement, the SFC said the JPEX incident had highlighted the importance of regulating crypto trading platforms.

Importance of Disseminating Information to Users

The Hong Kong regulator also said the dissemination of information to crypto users via its alert list, warnings, and educational efforts can help investors better understand the risks associated with crypto assets. The regulator added:

The SFC will explore with the Police to set up a dedicated channel to share information on suspicious activities of and breaches by VATPs [virtual asset trading platforms] and to investigate the JPEX incident to bring the wrong-doers to justice.

Meanwhile, when discussing the SFC’s move to reveal the names of the applicants, Fung-yee however insisted being on the list does not mean they are compliant. As shown on the SFC website, only two companies, OSL Digital Securities and Hash Blockchain are licensed to operate as crypto platforms. The SFC said four other entities have applied for the same license. The four are HKVAX, Hkbitex, Hong Kong BGE Limited, and Victory Fintech Company Limited.

What are your thoughts on this story? Let us know what you think in the comments section below.

Post a Comment

Previous Post Next Post