Hong Kong’s Securities and Futures Commission (SFC) has issued a warning to investors about the danger of unregistered virtual asset trading platforms (VATPs).
According to the financial regulator, not only are a number of VATPs failing to register, they are falsely claiming to have submitted applications, thereby giving a false sense of assurance to investors.
The SFC introduced new rules earlier this year to regulate the rapidly growing virtual asset trading market.
This included a transition period to allow VASPs to make any organisational and administrative changes needed to comply with the legal and regulatory requirements.
However, it has come to the regulator’s attention that some VASPs have set up new entities in anticipation of registering with the SFC and then continuing to engage in unregulated activity.
The SFC has warned retail investors to check its website for an official list of regulated platforms or else risk the possibility of losing all of their investments.
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