Hong Kong’s Securities and Futures Commission (SFC) has warned of unregulated cryptocurrency trading platforms, particularly Binance. The regulator said the crypto exchange is offering “share tokens” trading.
The SFC issued a statement on Friday warning the public of unregulated crypto trading platforms. The regulator turned to Binance in particular, stating that the Hong Kong global crypto exchange may offer trading services in “share tokens” to investors. The SFC in detail:
The SFC wishes to make it clear that no Binance group company is licensed or registered to conduct “regulated activities” in Hong Kong.
“Stock tokens are virtual assets that are backed by various portfolio portfolios of underlying listed foreign stocks,” said the SFC.
The regulator stated that “Hong Kong stock tokens are likely to be ‘securities'”. Activity ‘and require a license from the SFC, unless there is a corresponding exception, ”says the announcement.
Thomas Atkinson, SFC Executive Director of Enforcement, commented:
Investors should beware of the risks of trading virtual assets on an unregulated platform. If the platform goes out of service, breaks down, or is hacked, investors could potentially 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 had difficulty withdrawing fiat currency or virtual assets from their accounts opened with unregulated platforms”.
In addition to Hong Kong, more and more regulators have issued warnings about Binance, including the UK, Japan, Italy, Thailand, Lithuania and the Cayman Islands.
What do you think of the Hong Kong regulator’s warning? Let us know in the comment section below.
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