The Securities and Futures Commission (SFC) of Hong Kong has announced that it will publish a list of companies that have applied for licenses to offer cryptocurrency trading services to retailers. The move comes as public concern over such platforms mounts in the wake of JPEX’s decision to suspend trading after being identified by the SFC as having provided investment services to retail investors in Hong Kong without the necessary license.
Although two platforms have been licensed since the SFC’s new rules came into effect in June, only four more have applied. Around HKD1.43bn ($182m) of assets have been frozen on JPEX.
The SFC’s decision to publish a list of licensed crypto trading platforms is seen as a positive step towards increasing transparency and protecting investors. However, some critics have argued that the SFC’s licensing requirements are too stringent and could stifle the growth of the crypto industry in Hong Kong.
The SFC has defended its licensing regime, arguing that it is necessary to protect investors from the risks associated with crypto trading. The SFC has also stated that it is committed to working with the crypto industry to develop a robust and sustainable regulatory framework.
The publication of the list of licensed crypto trading platforms is expected to take place in the coming weeks. Investors are advised to carefully consider the risks involved before investing in cryptocurrencies and only invest through licensed platforms.