Hong Kong: 'inappropriate practices' of crypto exchanges could be criminalized

Hong Kong's regulator has warned that crypto exchanges' "improper practices" could be criminalized

The country's regulator has identified cases where platforms have provided services without the necessary license or reported knowingly false information about obtaining it

The Securities and Futures Commission of Hong Kong (SFC) said that exchanges that violated the law will not be licensed to operate in the cryptocurrency market.

The country's regulator has identified a number of cases where platforms provided services without having the necessary license and called their activities a "criminal offense." Some trading platforms, meanwhile, claimed to have all the necessary authorizations. But, the SFC noted, these companies had not even applied for the relevant license.

"Any person who misrepresents facts to induce another person to trade in virtual assets is an offender," the Commission said.

The SFC also said that during the transition process, a number of companies have set up new structures to provide virtual asset trading services. They publicly stated plans to obtain licenses but failed to do so. Russians are not allowed to trade on the exchange, but Chinese and US citizens are allowed to trade under a number of conditions.