Hong Kong regulator warns of unregulated cryptocurrency trading platforms and Binance – Bitcoin News
The Hong Kong Securities and Futures Commission (SFC) has issued a warning regarding unregulated cryptocurrency trading platforms, especially Binance. The regulator said the cryptocurrency exchange offers trading in “stock tokens.”
The SFC issued a statement on Friday warning the public about unregulated crypto trading platforms. The regulator addressed Binance in particular, saying the global cryptocurrency exchange may offer “stock token” trading services to investors in Hong Kong. The SFC detailed:
The SFC would like to clarify that no entity in the Binance group is authorized or registered to conduct “regulated activity” in Hong Kong.
“Stock exchange tokens are virtual assets which are represented as being backed by different portfolios of custodians of underlying shares listed abroad”, detailed the SFC.
The regulator noted that “In Hong Kong, stock tokens are likely to be ‘securities’. activity “and require a license from the SFC unless an applicable exemption applies,” says the announcement.
Thomas Atkinson, Executive Director of SFC Enforcement, said:
Investors should be wary of the risks involved in trading virtual assets on an unregulated platform. If the platform stops functioning, collapses, or is hacked, investors may run the risk of losing all of their investments held on the platform.
The SFC noted that it “has received complaints from investors who have encountered difficulties in withdrawing fiat currencies or virtual assets from their accounts opened with unregulated platforms.”
Besides Hong Kong, a growing number of regulators have issued warnings regarding Binance, including the UK, Japan, Italy, Thailand, Lithuania and the Cayman Islands.
What do you think of the warning from the Hong Kong regulator? Let us know in the comments section below.
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