Hong Kong regulator warns of unregulated trading platforms stressing Binance
Hong Kong’s Securities and Futures Commission (SFC) has issued a warning of unregulated cryptocurrency trading platforms highlighting Binance.
Hong Kong regulators warn of unregulated trading platforms and emphasize Binance
The SFC has released a statement warning the public of unregulated cryptocurrency trading platforms. The regulator specifically mentioned Binance and said the Hong Kong global crypto exchange may offer “security token” trading to investors:
The regulator also said that Binance Group companies are not licensed or authorized to provide any type of services in Hong Kong.
The regulator states that a security token in Hong Kong can be a “security”. For the securities under consideration, “the marketing and / or distribution of such tokens – whether in Hong Kong or as a destination for Hong Kong investors – constitutes an ‘operating regulation’ and applies for a license from the SFC, unless applicable exceptions apply”, is stated in explained in the notice.
Thomas Atkinson, SFC Executive Director of Enforcement commented:
The SFC noted that it has received “complaints from investors who are having difficulty withdrawing fiat currency or virtual assets from their accounts opened with unregulated platforms”.
Hong Kong is the eighth regulator to warn against Binance for operating without the required licenses. Just a few days ago, Italy’s leading regulator CONSOB issued a similar warning to the world’s largest cryptocurrency exchange, as its regulatory problems were increasing every day.
The Hong Kong government’s crackdown on crypto companies, particularly crypto exchanges, has heightened concerns about money laundering practices. The recent call for tough regulatory action around cryptocurrency exchanges has begun as governments continue to phase out non-compliant services amid growing demand for digital assets.
Hong Kong warns of unregulated trading platforms and highlights that Binance-Binance is threatened for global dominance
Binance has established itself as the premier cryptocurrency exchange with a global audience that leads both the spot and derivatives markets. While Binance has claimed that it is fully compliant in every country it does business in, a number of recent warnings show that the exchange’s regulatory positions are very different from those described.
While Binance’s regulatory problems are increasing every day, US competitors like Coinbase and FTX have made significant strides in terms of rapid adoption with regulatory compliance. Binance has overlooked a number of regulatory issues in its quest to lead the crypto market, with the lack of a head office being the main issue that many regulators have specifically pointed out. .
So far, Japan, Canada, Hong Kong, Italy, the Cayman Islands, Thailand, the United Kingdom and Singapore have warned Binance not to operate without a license. The regulatory action against the world’s leading crypto exchange has tightened last month and is now threatening to limit its rapid expansion. While regulatory and compliance alerts are nothing new to Binance as it operates in so many countries with very different rules and regulations.
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