
Hong Kong’s Securities and Futures Fee (SFC) has issued a warning about unregulated cryptocurrency trading platforms, particularly Binance. The regulator claimed that the crypto exchange is featuring the buying and selling of “stock tokens.”
The SFC issued a statement Friday warning the community about unregulated crypto trading platforms. The regulator resolved Binance in unique, stating that the international crypto exchange may well be giving trading services in “stock tokens” to Hong Kong investors. The SFC detailed:
The SFC needs to make it obvious that no entity in the Binance team is accredited or registered to conduct ‘regulated activity’ in Hong Kong.
“Stock tokens are digital belongings that are represented to be backed by unique depository portfolios of underlying abroad shown shares,” the SFC specific.
The regulator famous that “In Hong Kong, inventory tokens are most likely to be ‘securities.’” For individuals that are viewed as securities, “marketing and/or distributing such tokens – irrespective of whether in Hong Kong or targeting Hong Kong buyers – represent a ‘regulated activity’ and demand a licence from the SFC except if an applicable exemption applies,” the announcement explains.
Thomas Atkinson, the SFC’s Government Director of Enforcement, commented:
Traders ought to be wary of the hazards of trading virtual assets on an unregulated platform. If the platform ceases operation, collapses, or is hacked, investors could deal with the doable risk of losing their overall investments held on the platform.
The SFC famous that it “has gained grievances from investors who knowledgeable issues in withdrawing fiat currencies or digital belongings from their accounts opened with unregulated platforms.”
Aside from Hong Kong, an expanding quantity of regulators have issued warnings about Binance, including the U.K., Japan, Italy, Thailand, Lithuania, and the Cayman Islands.
What do you imagine about the Hong Kong regulator’s warning? Allow us know in the comments segment under.
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