The Hong Kong Securities and Futures Commission of Hong Kong (SFC) has warned about unregulated cryptocurrency trading platforms like Binance. According to the regulator, the cryptocurrency exchange offers trading in “exchange tokens”
The SFC wishes to make it clear that no entity in the Binance group is licensed or registered to conduct ‘regulated activity’ in Hong Kong.The SFC detailed
Hong Kong Securities and Futures Commission warns against Binance
The SFC issued a warning on Friday about unregulated cryptocurrency trading platforms. Binance was specifically mentioned by the regulator, who stated that Binance could offer “stock token trading” services to hong kong investors.
According to the SFC’s claims, “no entity from Binance is licensed to or registered to operate any regulated business in Hong Kong.”
Also, the regulator pointed out that stock tokens were “probably securities” in Hong Kong. The communication explained that this means that the trading entity must be licensed by the SFC “unless an adequate exemption applies.”
Thomas Atkinson, Executive director of Enforcement at SFC, spoke out about the case in the media.
Investors should be wary of the risks associated with trading virtual assets on an unregulated platform. If the platform stops working, collapses or is hacked, investors could face the possible risk of losing all funds held on the platformhe said.
SFC acknowledged that it had received complaints about investors having difficulty withdrawing virtual assets or fiat currencies from accounts on unregulated platforms.
Hong Kong is not the only one being warned about Binance. Regulators from Japan, the UK and other countries such as Italy, Thailand, Lithuania, and the Cayman Islands are warning.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.