Hong Kong’s Securities and Futures Commission (SFC) has taken another major step in its ongoing efforts to regulate the crypto industry.
The watchdog recently added seven crypto trading platforms to its Alert List, warning investors about their illegal operations in the region.
Protecting Investors in a Growing Crypto Hub
The SFC’s Alert List, maintained since January 2020, serves as a public record of registered, unregistered, and illegal crypto trading entities.
This initiative aims to reduce risks associated with scams and fraud in the rapidly evolving crypto space. With the latest additions on July 5, the list now features 39 entries, with 28 exchanges flagged in 2024 alone.
The newly added platforms include Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest.
These exchanges are suspected of engaging in fraudulent activities and misleading investors about their registration status with the SFC.
Many reportedly employed extortion tactics, such as blocking withdrawals and demanding “fees” to resume operations.
This crackdown comes as part of Hong Kong’s broader strategy to establish itself as a regulated crypto hub.
Earlier this year, the SFC set a May 31 deadline for all crypto exchanges to apply for operational licenses. While over 22 exchanges submitted applications, several withdrew just before the cutoff date.
Despite the stringent regulatory approach, Hong Kong remains committed to attracting crypto and Web3 startups.
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