After the JPEX incident, the Hong Kong Securities and Futures Commission increased the transparency of virtual asset trading platform license applications by exposing suspicious platforms. Recently, the Hong Kong Securities and Futures Commission named three more "suspicious virtual asset platform trading platforms" on its official website. So far, the Hong Kong Securities and Futures Commission has named a total of 9 suspicious virtual asset trading platforms on its official website.
It is understood that the three named suspicious platforms are BitCuped, HOUNAX and the Hong Kong Digital Research Institute (hkdao). The Securities and Futures Commission of Hong Kong pointed out that these platforms claim to be associated with Hong Kong or target Hong Kong investors, but they are not licensed in Hong Kong.
BitCuped claims to be located in Central, Hong Kong, calls itself a virtual currency trading platform, and pretends to be a manager of the Hong Kong Stock Exchange. However, the founding date given on the platform’s website is consistent with the spelling of the names of the current CEO and Chairman of the Hong Kong Stock Exchange, raising suspicion.
HOUNAX claims to be a cryptocurrency trading platform that works with financial institutions and venture capital companies, but this is not the case. The company appears to be targeting Hong Kong investors and claims its investors include well-known institutions such as Coinbase, Sequoia Capital, Goldman Sachs and IDG.
Hong Kong Digital Research Institute (hkdao) was also included in the list of suspicious virtual asset trading platforms. The company claimed to have obtained a license from the Hong Kong Securities and Futures Commission, but this was not the case. The Hong Kong Securities Regulatory Commission also stated that the "tip list" published on the official website may not be comprehensive. The Hong Kong Securities Regulatory Commission will gradually add newly discovered suspicious platforms and invite the public to actively participate: if the public is contacted by an unlicensed company, they can fill out an online complaint form. .
The Hong Kong Securities and Futures Commission stated that the list of suspicious platforms published on the official website may not be comprehensive, and they will continue to add newly discovered suspicious platforms. They are also encouraging the public to get involved by completing an online complaint form if someone comes into contact with an unlicensed company.
In fact, exposing suspicious platforms is a new measure taken by the Hong Kong Securities and Futures Commission to regulate virtual asset transactions after the JPEX incident. In order to protect the legitimate rights and interests of investors, the Hong Kong Securities and Futures Commission has begun to publish multiple lists of virtual asset platforms on its website, including: a list of licensed platforms; a list of applicants for virtual asset trading platforms; applications for which license applications have been returned, rejected or withdrawn list of applicants; list of companies that have graduated; list of companies that have been deemed to be licensed.
First, the “List of Licensed Platforms” lists the names of virtual asset trading platform operators officially licensed by the China Securities Regulatory Commission. Currently, the list still only includes two companies, namely OSL Digital Securities Co., Ltd. and Hash Blockchain Limited.
Secondly, the “Applicant List” lists the “Virtual Asset Trading Platform Operators” who have submitted license applications. As of now, there are 7 platforms on this list. However, virtual asset trading platform operators on this list may not eventually be licensed.
Again, the list of applicants whose license applications have been returned, rejected or withdrawn. These applicants may have been moved to this list because their applications were incomplete or had important issues. There is currently one institution on the list.
Fourth, the “List of Closing Platforms” lists the names of virtual asset trading platform operators that must close their businesses within a limited period in accordance with anti-money laundering regulations. As of now, there are no relevant companies in the list of the China Securities Regulatory Commission.
Finally, the "List of Virtual Asset Trading Platforms Treated as Licensed" lists the names of operators of virtual asset trading platforms that were deemed to be licensed before June 1, 2024, that is, virtual asset transactions that enjoy the "transition period" The name of the platform. Currently, there is no relevant platform on the list on the China Securities Regulatory Commission website. In addition to the above list, the Hong Kong Securities Regulatory Commission also announced a list of "suspicious virtual asset trading platforms". The three suspicious platforms mentioned above are on this list.
Summarize
The original intention of the Hong Kong government in formulating virtual asset regulatory regulations is to provide a regulated channel for virtual assets and to protect the safety of investors as much as possible while developing the virtual asset business. Before the implementation of "application list transparency", the public was indeed short-term. It is not possible to know the true licensing status of each platform within a certain period of time, and there is also a lack of awareness of platforms with irregularities and suspicious behaviors. This is why the Securities and Futures Commission of Hong Kong, which discovered the problem, was able to respond so quickly. However, some people in the industry said that suspicious platforms may be hidden in every corner of the Internet, and there is still a long way to go to protect investors in virtual asset trading platforms.