Despite the recent scandal, cryptocurrency exchanges operating in Hong Kong will retain a one-year grace period.
According to local media reports on November 27, Leung Fengyi, Chief Executive Officer of the Hong Kong Securities Regulatory Commission, said, point out“Even if the grace period ends tomorrow, fraud will still occur, so there is no intention to modify the grace period and other measures for the time being.”
Recently, several cryptocurrency scandals have rocked the Special Administrative Region. In September, the then-unlicensed Hong Kong cryptocurrency exchange JPEX collapsed amid Ponzi scheme accusations that led to the arrest of 66 people and one employee. estimated The loss was HK$1.6 billion (US$205 million).
On November 25, Hounax, another unlicensed cryptocurrency exchange, It is said Through another suspected Ponzi scheme, 131 residents were defrauded of HK$120 million (US$15.4 million). Sergeant Chan Wai-kee of the Commercial Crime Investigation Bureau of the Hong Kong Police Force explained that scammers pretend to be investment experts and recruit users with high returns. When users later tried to withdraw their funds, they were unable to do so.
On November 27, Cointelegraph reported that the Binance-affiliated HKVAEX exchange was still trying to apply for a license in Hong Kong. Earlier this month, BC Technology Group, owner of Hong Kong-based cryptocurrency exchange OSL, received a $90 million investment from blockchain company BGX.
Related: Binance-affiliated HKVAEX still preparing to apply for license in Hong Kong
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