Hong Kong Securities and Futures Commission Blacklists Hong Kong Digital Research Institute Over Suspicious Virtual Asset Practices

Published: November 24, 2023 at 10:59 am Updated: November 24, 2023 at 10:59 am

Edited and fact-checked:
November 24, 2023 at 10:59 am

In Brief

The Hong Kong Securities and Futures Commission added the Hong Kong Digital Research Institute to its list of suspicious virtual asset trading platforms

Hong Kong Securities and Futures Commission Blacklists Hong Kong Digital Research Institute Over Suspicious Virtual Asset Practices

The Hong Kong Securities and Futures Commission (SFC) has added the Hong Kong Digital Research Institute to its list of suspicious virtual asset trading platforms.

The regulatory body highlighted that the company appears to be specifically targeting Hong Kong investors and falsely claimed to possess a license from the Hong Kong Securities and Futures Commission.

The SFC alert list includes entities which have come to the attention of the regulator, because they were unlicensed in Hong Kong and are believed to be targeting Hong Kong investors or claim to have an association with Hong Kong.

Currently, the Hong Kong Securities and Futures Commission has identified nine such suspicious virtual asset trading platforms.

Hong Kong Regulator Takes Charge of Virtual Assets Landscape

The virtual asset sector in Hong Kong is undergoing rapid growth, propelled by the government’s proactive efforts to cultivate a dynamic ecosystem for virtual assets within the city. Faced with market collapses, shocks, and a surge in traditional financial institutions venturing into digital assets, market participants are gravitating towards quality.

Responding to this shift, the SFC keeps implementing various regulatory rules and guidelines tailored to different types of virtual asset service providers.

In a notable event in September, the Hong Kong cryptocurrency scene witnessed a scandal as the unlicensed crypto exchange JPEX allegedly swindled investors of approximately $165 million. The aftermath of this incident is considered one of the most severe financial crises to impact the region.

Despite such challenges, Hong Kong is increasingly emerging as a cryptocurrency hub, attracting companies eager to secure local licensing for their operations.

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About The Author

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and engagement with scientific writing.

Alisa Davidson