Matrixport Files Virtual Asset Trading License Application with Hong Kong SFC

by Aric Feil

Matrixport utilized for a virtual asset shopping and selling license with Hong Kong’s securities regulator on Feb. 26.

A roster printed on the Securities and Futures Price web command confirmed that the platform’s Hong Kong-primarily primarily based mostly branch is vital as Flying Hippo Technologies.

At most up-to-date, 21 corporations take into accout utilized for a VA shopping and selling license in Hong Kong. Amongst them are, Bixin, HKVAX, DFX Labs, Bullish, WhaleFin. HTX (previously Huobi World), resubmitted its utility after first and valuable withdrawing on Feb. 23. Additionally, two diverse corporations, AMMBR and BitHarbour, had withdrawn their functions earlier.

Currently, most productive two platforms—OSL Digital Securities and Hash Blockchain—take into accout been licensed by the SFC.

Matrixport’s filing comes as the minimize-off date nears for Hong Kong-primarily primarily based mostly VA shopping and selling platforms to file functions for a license. Failure to post by Feb. 29 will end result in critical end of operations by the terminate of Could well.

Earlier this one year, Matrixport accurately predicted that Bitcoin would reach $50,000 following the SEC’s approval of Bitcoin Boom ETFs. As of early Wednesday, the crypto traded at about $57,062.

Unlicensed Crypto Exchanges in Hong Kong Face Loyal Motion

Final one year, Hong Kong’s SFC introduced stricter regulations for digital asset corporations. This included a licensing machine for cryptocurrencies, which got right here into discontinue in June. This advancement enabled retail cryptocurrency shopping and selling after a cosmopolitan duration for the trade, marked by the collapse of the FTX crypto alternate.

No longer making use of for a license could presumably end result in fines and that you just would possibly presumably furthermore factor in imprisonment. Additionally, unlicensed crypto exchanges could presumably well advance upon prison prices for actively promoting products and companies by plan of influencers and over-the-counter virtual asset cash changers. Crypto alternate JPEX serves as an illustration of this.

Committing fallacious or counterfeit acts with virtual sources is deemed a violation beneath the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). Breaches of the AMLO could presumably furthermore fair terminate up in gigantic penalties, along with fines of up to $10,000,000 and imprisonment for a most of 10 years upon conviction.

SFC Urges Investors to Articulate Platforms

In December, the SFC SFC issued a public caution regarding that you just would possibly presumably furthermore factor in virtual asset scams associated with entities named “HongKongDAO” and BitCuped. The regulator suspected these entities of distributing inaccurate and counterfeit recordsdata by plan of on-line platforms.

One by one, the regulator knowledgeable crypto traders to most productive use licensed platforms and to test the legitimacy of the exchanges they register with.

“Investors must silent test the regulatory assign of a VATP as soon as in some time and in any tournament on 1 March 2024,” the SFC said.

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