Huang Lexin, director of the Licensing Division of the Intermediary Department of the Hong Kong Securities and Futures Commission, said on Friday that the Securities and Futures Commission will strictly review and approve license applications for virtual asset trading platforms, and said that if these platforms applying for licenses are not eventually granted licenses, they will wind down their business in an orderly manner.
(Previous summary: The Hong Kong Securities and Futures Commission exposed! More than 10 crypto companies have stated their intention to “apply for a license” but have not implemented it, including Binance, OKX, HTX…)
(Background supplement: In addition to JPEX, the Hong Kong Securities and Futures Commission disclosed a list of five other “suspicious” crypto exchanges)
The fraud scandal involving cryptocurrency exchange JPEX continues to spread. The Hong Kong Securities Regulatory Commission handed over the case to the police for investigation and began to officially disclose the status of the virtual asset platform license application in late September.Related listincluding the list of licensed platforms, platforms that have applied for licenses, completed platforms, etc.
Against this background, comprehensiveHong Kong 01、East NetworkAccording to reports, Huang Lexin, Director of the Licensing Division and Head of the Financial Technology Group of the Intermediary Department of the China Securities Regulatory Commission, emphasized on the Investment Committee program on Friday that the platforms in the list of license applicants published on the China Securities Regulatory Commission’s website have not yet been licensed and are not licensed. It will definitely mean that you can successfully obtain a license in the future. She emphasized:
If these platforms that apply for licenses are ultimately not granted a license, they will have to wind down their business in an orderly manner.
Those on the list of licensed trading platforms are those that actually hold licenses issued by the China Securities Regulatory Commission.
Many world-renowned exchanges have previously announced that they will take action, including Huobi, OKX, Gate.io, Bitget and ByBit.., but the information disclosed by the Hong Kong Securities and Futures Commission currently only includes the following four. It is unclear whether these trading platforms are currently application progress.
Extended reading: 4 exchanges applying for Hong Kong virtual asset licenses are released! Wei Jianhuobin, OKX, Bybit..
The Hong Kong Securities and Futures Commission’s list of virtual asset trading platform applicants currently only has 4 companies.Source: China Securities Regulatory Commission
Hong Kong Securities and Futures Commission: Will strictly review and approve license applications
Huang Lexin pointed out that the China Securities Regulatory Commission will strictly review and approve applications for virtual asset trading platforms and will adopt the principle of “same business, same risks, same rules” and require platforms to comply with all aspects of regulatory requirements like traditional financial institutions such as securities firms.
Approval requirements include financial stability, suitable candidates for the person in charge and directors, proper custody of customer assets by the platform, information security, implementation of KYC verification and anti-money laundering procedures, prevention of market manipulation and illegal activities, accounting and auditing, risk management and control, avoidance of conflicts of interest, etc… .
Currently, the China Securities Regulatory Commission only allows licensed platforms (Hashkey and OSL) to provide trading of Bitcoin and Ethereum. It is still prohibited to provide other services or activities such as pledge, margin trading, proprietary trading, etc., due to possible conflicts of interest. The platform must also conduct due diligence before listing virtual assets for trading to ensure that the relevant assets comply with the token inclusion criteria, must be approved by the Securities Regulatory Commission, and must disclose sufficient information to investors.
There are only two licensed platforms published by the Hong Kong Securities Regulatory Commission.Source: China Securities Regulatory Commission official website
Huang Lexin also mentioned that before allowing retail investors to participate in transactions, virtual asset trading platforms must assess retail investors’ knowledge and risk tolerance levels of virtual assets. They must also refer to investors’ financial and personal situations to set investment limits for customers.
She finally reminded that Hong Kong investors should choose licensed platforms for trading. When in doubt, they can refer to the list of licensed platforms issued by the Securities and Futures Commission. She also pointed out that virtual assets are high-risk products and investors need to consider their own risk tolerance before investing. Do your homework and don’t speculate.
📍Related reports📍
Chinese official media named JPEX as the “largest financial fraud case in Hong Kong history”; China Securities Regulatory Commission: only 4 companies are applying
Hong Kong MPs warn: Beware of JPEX’s compensation plan!Fear of being caught up in “shareholder debt”
Will exchanges other than JPEX be in trouble again?Hong Kong Securities and Futures Commission: Refusal to confirm 15 companies’ applications for licenses
2023-10-07 08:05:43
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