Hong Kong flags 7 unregulated crypto exchanges for noncompliance

The Securities and Futures Commission of Hong Kong (SFC) issued alerts against seven crypto trading platforms for illegally operating in the region without operational licenses.

The Hong Kong SFC manages public records of all registered, unregistered and illegal crypto trading entities to reduce risks related to scams and fraud. The Alert List, which highlights exchanges that are either unlicensed or display false association with Hong Kong, saw the addition of seven exchanges on July 5.

For Hong Kong investors’ safety

The Hong Kong SFC has been maintaining the alert list since January 2020, and it currently has 39 entries. In 2024 alone, 28 cryptocurrency exchanges were flagged. The most recent additions to the list are Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT and Bstorest.

According to the warnings, all exchanges are suspected of engaging in fraudulent activities and duping investors into believing they were registered with the SFC. Most of these exchanges used extortion techniques, such as blocking withdrawals and demanding “fees” to resume operations.