The United States Securities and Futures Commission (SFC), the securities regulator of Hong Kong, has recently disclosed a unique development. The regulatory agency intends to publish the names of the applicants who pursue licenses for crypto exchanges because the JPEX has started an investigation. The respective probe has paved the way for several arrests around the region.
Hong Kong to Expose Cryptocurrency License Applicants Following JPEX Investigation
The JPEX event indicates the risks related to dealing with the virtual asset trading platforms (VATPs) which are unregulated. In addition to this, it also highlights the requirement for adequate regulation for the maintenance of market confidence. The SFC mentioned in its statement on Monday. The agency also discussed the distribution of information among the investor people via the Alert List and warnings.
As per the SFC, this information dissemination can be improved. This can assist the investors in better comprehending the likely risks that the suspicious VATPs or websites entail, it added. In this way, the members of the investing community will get significant help to avoid potential hazards. A few days back, John Lee (the chief executive officer of Hong Kong at the SFC) also commented on this.
The Crypto Entities Require Getting a License from the SFC for Their Investors’ Protection
The executive stressed the requirement for crypto entities to get a license from the SFC for the protection of their investors. The executive added that the agency will pay considerable attention to public education. This will reportedly help investors know the current hazards. Just Hash Blockchain Limited and OSL Digital Securities Limited have won licenses.
The SCMP disclosed that 4 other entities have also submitted applications for licenses. They take into account Victory Fintech Company Limited, Hong Kong BGE Limited, HKBitEx, and HKVAX nonetheless these are comparatively small. Several prominent crypto exchanges have provided no signal of the intention to get the license in Hong Kong.
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