The SFC warned that those using unregistered exchanges should prepare for potential disruptions and take action to protect their investments. They advised investors to either close their accounts on unlicensed platforms by May 31, 2024, or switch to licensed platforms.
“Investors using virtual asset trading platforms (VATPs) that operate in Hong Kong but are not listed as legal are urged to take action. For example, close accounts on them before May 31, 2024 or switch to platforms for trading virtual assets that have an SFC license,” the regulator stated.
Currently, only two platforms, HashKey and OSL, have received an SFC license. However, the regulator is reviewing applications from 14 other crypto companies, which include Bybit, OKX, and HKVAEX, a cryptocurrency exchange allegedly linked to major exchange Binance.
Furthermore, the SFC recently called on local crypto exchanges to provide insurance coverage for at least 50% of client assets. This measure aims to safeguard users and minimize the potential impact of security breaches or insolvency.