Key facts
- A crypto platform on regulatory alert lists has opened an office in Hong Kong.
- Experts are urging increased scrutiny of how these firms market themselves.
- Seven platforms were added to the SFC's alert list on July 5 for falsely claiming registration.
- Bybit's local unit has applied for a license, but the exchange is on the SFC's alert list.
A cryptocurrency trading platform, which is on alert lists from Hong Kong and Canadian regulators, has established an office in Hong Kong. This development has led experts to call for enhanced oversight of how such firms promote themselves while maintaining an open business environment. The experts noted that inclusion on a regulator's alert list does not automatically imply illegal activity but stressed the need for authorities to increase supervision of marketing practices for regulated financial products. The SFC added seven platforms, including Taurusemex and Yomaex, to its alert list on July 5, accusing them of falsely claiming registration and employing extortion tactics. Bybit's local unit, Spark Fintech Limited, has applied for a virtual-asset trading platform license, but the exchange itself has been placed on the SFC's alert list, which could hinder its licensing process.