Hong Kong Cracks Down on Noncompliant Crypto Trading Platforms
A regulator in Hong Kong has voiced dissatisfaction with the ongoing inspections of cryptocurrency exchanges waiting to obtain full licenses in the region.
While some applicants have received initial approvals, they must still fully comply with the requirements of the Hong Kong Securities and Futures Commission (SFC) in order to be granted full licenses.
The SFC has found that during on-site scrutiny, some crypto exchanges that have been “deemed to be licensed” are not adequately addressing cybercrime risks.
Additionally, it was discovered that some exchanges rely too heavily on a small number of executives to supervise the custody of client assets.
These findings were reported by Bloomberg, which cited unnamed sources. “Deemed-to-be-licensed” applicants are those who are currently operating under a transitional framework for crypto firms in Hong Kong that was implemented before the licensing regime was put into effect.
