Hong Kong’s 1 year grace period for cryptocurrency exchanges remains intact, despite recent rumors, according to neighborhood media sources. Julia Leung, CEO of the Securities and Futures Commission, recognizes that fraudulent tasks might continue past the grace period, recommending that no changes impend in the existing actions.
Applied in June, brand-new regulations mention that cryptocurrency exchanges running in Hong Kong must acquire a digital property company (VASP) license from the city’s Securities and Futures Compensation by June 2024. Nonetheless, unregistered exchanges are presently enabled to proceed their procedures throughout the transitional phase.
Hong Kong has actually just recently experienced numerous crypto-related rumors. In September, unlicensed crypto exchange JPEX collapsed because of allegations of a Ponzi plan, leading to 66 arrests and approximately 1.6 billion Hong Kong dollars ($205 million) in losses.
On November 25, an additional unlicensed exchange named Hounax apparently ripped off HK victims of 148 million HKD ($18.9 million) through a thought Ponzi system. The fraudsters posed as investment experts, tempting individuals with assurances of significant returns. Nonetheless, when users tried to withdraw their funds, they found that it was not possible.
