Hong Kong’s Securities and Futures Fee (SFC) has issued a warning about unregulated cryptocurrency investing platforms, specifically Binance. The regulator reported that the crypto exchange is supplying the trading of “stock tokens.”
The SFC issued a assertion Friday warning the community about unregulated crypto buying and selling platforms. The regulator dealt with Binance in distinct, stating that the international crypto exchange might be providing trading solutions in “stock tokens” to Hong Kong investors. The SFC thorough:
The SFC wishes to make it apparent that no entity in the Binance team is licensed or registered to perform ‘regulated activity’ in Hong Kong.
“Stock tokens are virtual assets that are represented to be backed by diverse depository portfolios of fundamental abroad stated stocks,” the SFC in-depth.
The regulator mentioned that “In Hong Kong, stock tokens are probable to be ‘securities.’” For these that are considered securities, “marketing and/or distributing these tokens – whether or not in Hong Kong or concentrating on Hong Kong traders – constitute a ‘regulated activity’ and need a licence from the SFC until an applicable exemption applies,” the announcement points out.
Thomas Atkinson, the SFC’s Govt Director of Enforcement, commented:
Investors should really be cautious of the threats of investing digital assets on an unregulated platform. If the platform ceases operation, collapses, or is hacked, buyers might deal with the feasible danger of shedding their whole investments held on the platform.
The SFC pointed out that it “has received grievances from investors who experienced difficulties in withdrawing fiat currencies or digital property from their accounts opened with unregulated platforms.”
Aside from Hong Kong, an increasing selection of regulators have issued warnings about Binance, including the U.K., Japan, Italy, Thailand, Lithuania, and the Cayman Islands.
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