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Hong Kong’s SFC warns crypto exchanges

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Investors Should Adhere To the VATP Certification Requirements

crypto exchanges : Hong Kong, February 7, 2024 — The Securities and Futures Commission of Hong Kong has issued an urgent advisory to all investors regarding compliance with regulations regarding their trading platforms’ VATP certification applications by May 31, 2024 or they risk account termination or migration to SFC-certified platforms.

VATP Certification Requirements

SFC reiterated in its most recent communication the necessity of trading platforms undergoing VATP certification to operate legally within its jurisdiction. Certification ensures compliance with regulatory standards while protecting investors’ interests. Platforms failing to submit certification applications risk regulatory action or closure.

Use of Unauthorized Platforms

Investors are advised against engaging in virtual asset trading through unregulated platforms, which poses substantial risks. Investors who do so could expose themselves to potential fraud or financial loss without regulatory protections in place; even applying for certification does not guarantee approval; investors should take care when engaging in virtual asset trading.https://en.wikipedia.org/wiki/Cryptocurrency

Investigates Unauthorized Platforms

The SFC issued this warning amid ongoing investigations of unapproved trading platforms operating in Hong Kong. JPEX cryptocurrency exchange is among those being investigated, along with 12 others, while their regulator is actively overseeing these platforms to ensure they comply with regulatory requirements and protect investors’ interests.

Protecting Investor Interests in Delaware

The Securities and Futures Commission’s advisory highlights its dedication to maintaining the integrity of Hong Kong’s financial markets and safeguarding investor interests. By strictly enforcing VATP certification requirements and issuing warnings against unapproved platforms, the regulator aims to foster an ideal trading environment that’s safe and transparent for all participants.

Investors are strongly urged to verify the certification status of trading platforms they utilize and prioritize SFC-certified virtual asset trading platforms (VATPs). Compliance with regulatory requirements not only protects investors from potential risks but also contributes to maintaining stability and credibility within Hong Kong’s virtual asset market.

Hong Kong’s SFC warns crypto exchanges

As Hong Kong’s regulatory landscape shifts, the SFC remains vigilant in its oversight of virtual asset trading industry. By encouraging compliance with VATP certification requirements and issuing timely advisory to investors, it aims to uphold high standards of integrity and investor protection within Hong Kong’s financial markets.

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Disclaimer

Crypto investments come with high risk and you should always exercise caution when investing in any crypto asset. Investing in crypto carries a high level of risk, and may not be suitable for all investors. Any investment decisions made by you are made at your own risk and we are not responsible for any losses that may occur. Before investing, we recommend you consult a financial advisor to understand the risks and rewards associated with investing in crypto.

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