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Hong Kong authorities blacklist seven local unregulated crypto exchanges

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17.07.2024

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All blacklisted platforms are suspected of fraudulent activities and deceiving investors. In particular, most of these platforms widely practice various methods of extorting cryptoassets from customers. For example, blocking the withdrawal of funds with the requirement to pay "fixed fees" to resume operations.

At the same time, administrations of digital platforms mislead customers and claim in public sources that their crypto exchanges are licensed with the SFC and comply with all established legal regulations. Since January 2020, 39 dubious local cryptocurrency companies have been placed on the SFC's warning list. Of these, 28 have come to the regulator's close attention in 2024.

Earlier, Hong Kong Treasury chief Christopher Hui said that regulators will "monitor developments in the regional market, and are ready to revise digital asset regulation rules for licensed companies towards liberalization as needed."