Hong Kong warns unlicensed crypto exchanges “misleading” users

• Hong Kong regulator the Securities and Futures Commission (SFC) published the warning on August 7.
• Crypto exchanges yet to apply for licences but have gone ahead to publicise the same.
• Shiba Memu presale gathers speed with over $1.6 collected from early investors.

Crypto exchanges looking to acquire virtual assets trading licences in Hong Kong have been warned that offering certain services and products are not allowed. 

Meanwhile, one major crypto news headline today has been around Huobi, a crypto exchange looking to set up shop in Hong Kong. The exchange as well as Tron founder Justin Sun have termed insolvency rumours as more FUD.

Quietly gaining fresh momentum despite these developments is the Shiba Memu presale. As seen on the new meme coin’s website, investors eyeing new gems linked to artificial intelligence have poured nearly $1.64 million into the native SHMU token.

Hong Kong’s warning to unlicensed exchanges

The Securities and Futures Commission, Hong Kong’s securities regulator, today released a statement warning that some cryptocurrency exchanges are offering products for which they have no approval or license.

According to the agency, this translates to “improper practices,” by unlicensed virtual asset trading platforms (VATPs).  Per the SFC, some unlicensed exchanges have falsely claimed to have applied for licenses from the regulator when they have taken no such step.

“These untrue and misleading claims give the public a false sense of assurance that the VATP is in compliance with the SFC’s regulatory requirements,” the statement read.

Such claims amount to “fraudulent or reckless misrepresentation” aimed at inducing traders, the SFC warned and have likely been tailored to exploit the transitional arrangements in place as Hong Kong bring into effect new crypto rules relating to retail investors.

“Some unlicensed VATPs set up new entities to provide virtual asset services in Hong Kong. They also publicly announced their intention to apply for licences for these new entities. However, the services and products offered by some of these new entities may not be in compliance with the legal and regulatory requirements under the new regime,”

The SFC’s warning also involved the launch of new products and services, including crypto derivatives and earn accounts – these are not allowed as per the new…