How Hong Kong is cracking down on fraudulent cryptocurrency exchanges

Hong Kong is continuing its efforts to regulate cryptocurrency exchanges and crack down on those operating fraudulently and unregistered in the Special Administrative Region of China (SAR). The cryptocurrency market is currently worth $2.60 trillion (approximately Rs. 216,869 billion) and has attracted legitimate entrepreneurs and nefarious groups from around the world in recent years. New cryptocurrency exchanges are popping up around the world, making it difficult for investors to know whether these platforms are genuine or designed to deceive users. Hong Kong aims to ensure that all exchanges operating in the region are legal and registered with the relevant authorities.

The Hong Kong Securities and Futures Commission (SFC) recently remind The deadline for existing cryptocurrency exchanges in the region to apply for official operating licenses has passed. After May 31, Hong Kong will not allow cryptocurrency businesses to continue operating without permission.

In recent months, a total of 22 cryptocurrency trading platforms in Hong Kong have applied for this license.According to CoinTelegraph, these include Hing Kong BGE Limited, Victory Fintech Company Limited and DFX Labs, etc. Report.

As authorities tighten regulations on cryptocurrency exchanges, the Securities and Futures Commission has expressed concerns about one particular platform – HKCEXP. Authorities are warning people not to use the platform as it is suspected to be part of an ongoing cryptocurrency fraud.

HKCEP reportedly misled investors by falsely claiming to be registered with the Securities and Futures Commission. point out in a press release on Monday.

The China Securities Regulatory Commission blocked a number of non-compliant cryptocurrency platforms in March.In order to let citizens know about licensed platforms, Hong Kong decided to keep this list on its website.

The Indian government has taken similar measures to protect its investor base from fraud and financial theft. In December 2023, India’s Financial Intelligence Unit (FIU) issued show-cause notices to nine offshore companies, asking them to prove compliance with all Indian rules. These companies include Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfinex.

In India, all cryptocurrency-related companies must comply with the Anti-Money Laundering and Counter-Terrorism Financing (AML-CFT) framework. Both the laws fall under the Prevention of Money Laundering Act (PMLA) Act.