Hong Kong’s financial regulator, the Securities and Futures Commission (SFC), has set a registration deadline of June 1 for all virtual asset trading platforms (VATPs). Failure to comply will result in criminal sanctions, and users are advised to avoid non-compliant firms.
In a May 28 announcement, the SFC emphasized that operating without registration under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) constitutes a criminal offense. Investors are urged to verify the registration status of trading platforms on the SFC website.
Deemed-to-be-licensed VATPs, which operated before the new regulations, must adhere to guidelines and cannot onboard new retail clients until compliance is confirmed. They must also prevent mainland Chinese residents from using their services.
Hong Kong has tightened its crypto regulations to protect investors and prevent market collapses. Globally, regulators are seeking clear rules for the crypto market, reflecting a shift towards stricter oversight.
This move signals Hong Kong’s commitment to safeguarding investors and may influence future regulatory changes in mainland China.
