Hong Kong SFC Takes Action for Investors, Publishes List of Virtual Asset Trading Platforms

Hong Kong’s Securities and Futures Commission (SFC) is preparing to publish lists of virtual asset trading platforms (VATPs). This move comes in response to growing concerns over unregulated trading platforms, which have recently gained prominence.

This displays the SFC’s commitment to staying ahead in finance, while also addressing the risks associated with these platforms.

Regulating Digital Finance

Hong Kong’s SFC has always been in tune with the advancements in digital finance. They have observed the potential of technologies behind virtual asset activities and their implications on financial markets. However, this keen interest doesn’t mean they’ve turned a blind eye to the risks.

From decentralization to money laundering and investor protection concerns, the SFC has remained mindful of the hurdles posed by digital finance. In fact, as early as 2017, the SFC took the lead in establishing a regulatory framework for various virtual asset activities.

Keeping an Eye on Compliance

To identify potential violations, the SFC employs a range of information sources, including media reports, industry dialogues, and public feedback. Collaborating with its subsidiary, the Investor and Financial Education Council (IFEC), they are intensifying efforts to educate investors about the pitfalls of trading on unregulated platforms.

In a bid to keep the public informed, the SFC has outlined plans to introduce multiple VATP lists. These include a list of licensed VATPs, a list of mandated closing-down VATPs, and a list of deemed licensed VATPs effective from June 2024. Additionally, the SFC will feature VATP applicants of public interest.

A Move for Investor Protection

In addition to these lists, the SFC plans to highlight suspicious VATPs, giving them prominence on their official website. This is to make information readily available to the public clearly and transparently.

The SFC and IFEC are launching a comprehensive campaign across multiple channels, including social media, to shield the public from potential fraud further. The primary goal is to enhance public knowledge regarding the risks inherent in virtual assets and possible deceptive practices.

Do you think the SFC’s new VATP lists will be effective in protecting investors? Tell us what you think.