Hong Kong Tightens Crypto Platform Licensing, Warns of Fraud

The Hong Kong Securities and Futures Commission (SFC) has set a deadline for crypto platforms to apply for a license by February 29, 2024 or face mandatory cessation of operations by May 31, 2024. So far, only two platforms, OSL and HashKey, have secured licenses while 14 others, including Bybit, OKX and DFX Labs, have submitted applications. The SFC urges investors to only trade on licensed platforms and warns of penalties for misrepresentation by unlicensed platforms. The announcement follows a high-profile fraud case and is part of Hong Kong's larger regulatory efforts to secure a safer trading environment for crypto investors. In related news, Sam Lee, founder of the collapsed HyperVerse crypto pyramid scheme, is promoting a new project despite facing accusations of defrauding investors of $1.7bn.