Home>BLOCKCHAIN>Crypto change grace interval to stay unchanged in Hong Kong regardless of scandals

Crypto change grace interval to stay unchanged in Hong Kong regardless of scandals

A one-year grace interval for cryptocurrency exchanges working in Hong Kong will stay in place regardless of latest scandals.

In accordance with native information reports on Nov. 27, Julia Leung, Hong Kong’s Underneath Secretary for Monetary Providers and the Treasury, said, “Even when the grace interval ends tomorrow, fraud will nonetheless happen, so there isn’t a intention to switch the grace interval and different measures in the intervening time.” 

As per new regulations launched in June, crypto exchanges working in Hong Kong should apply for a Digital Asset Service Supplier (VASP) license with town’s Securities & Futures Fee by June 2024 or face deregistration. Nonetheless, unregistered exchanges can function within the metropolis throughout the interim transition interval. 

A number of crypto scandals have rocked the particular administrative area just lately. In September, Hong Kong crypto change JPEX, which was unlicensed on the time, collapsed after allegations of a Ponzi scheme that led to 66 arrests and an estimated 1.6 billion Hong Kong {dollars} ($205 million) in losses. 

On Nov. 25, Hounax, one other unlicensed crypto change working in Hong Kong, reportedly scammed 131 residents out of 120 million Hong Kong {dollars} ($15.4 million) via yet one more alleged Ponzi scheme. Chan Waikei, superintendent of the Hong Kong Police’s business crime bureau, defined that scammers impersonated funding specialists and solicited customers with the promise of excessive returns. When customers later tried to withdraw the funds, they may not achieve this. 

On Nov. 27, Cointelegraph reported that the Binance-linked HKVAEX change remains to be trying to apply for a license in Hong Kong. Earlier this month, BC Expertise Group, proprietor of Hong Kong crypto change OSL, secured a $90M investment from blockchain firm BGX

Associated: Binance-linked HKVAEX still preparing to apply for license in Hong Kong