Hong Kong Cracks Down on 7 Unregulated Crypto Exchanges

YEREVAN (CoinChapter.com) — The Hong Kong SFC manages public records of all registered, unregistered, and illegal crypto trading entities. This effort helps reduce risks related to scams and fraud. The Alert List, updated on July 5, now includes seven additional exchanges.

These platforms have been added due to their unlicensed status and false associations with Hong Kong.

Highlighted entities include Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest. Each of these exchanges has been flagged for engaging in activities that deceive investors. Common tactics include blocking withdrawals and demanding fees to resume operations.

Hong Kong SFC Enforces Crypto License Deadline

Since early 2024, Hong Kong has taken significant steps to regulate crypto trading services. The SFC mandated that all crypto exchanges apply for a license by May 31. Any platform failing to do so was required to shut down operations.

During this period, more than 22 exchanges applied for licenses. However, many withdrew their applications just before the deadline.

Hong Kong SFC Flags Exchanges, Promotes HK As Tech Hub

The SFC has maintained the Alert List since January 2020, and it now includes 39 entries. In 2024 alone, they flagged 28 exchanges. The latest additions allegedly engaged in fraudulent activities, falsely claiming SFC registration and using extortion techniques to manipulate investors.

Despite the regulatory crackdowns, Hong Kong continues to attract foreign investments. Recently, government entities attended a tech conference in Toronto, Canada. The event aimed to advertise Hong Kong as a tech hub for Canadian crypto and Web3 startups.

The conference was conducted in partnership with the Hong Kong Economic and Trade Office in Toronto (Toronto ETO), Invest Hong Kong (InvestHK), and StartmeupHK (SMUHK).

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