The security officials and Futures Commission (SFC) said that Binance, one of the leading cryptocurrency exchanges all over the world, was not licensed to sell tokens in the city. Considering this move the other regulators in the United States, Italy, Germany, Thailand, and Japan issued warnings to Binance.
SFC stated that “No entity in the Binance has a license neither register to conduct a “regulated activity” in Hong Kong.” Moreover, they stated that “SFC will not hesitate to take any firm action against non-licensed platforms and neither tolerate the violation of security laws.
Binance may face consequences in case of constitutional offense, as exchange tokens are more likely to consider as “titles” and they offer them to the Hong Kong public without permission.
On the other hand, the spokesperson of Binance stated that he did not currently hold any foreign Exchange transactions in Hong Kong. Moreover, the spokesperson stated that “We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion.
According to the UK researcher data of CryptoCompare of the last month, Binance was the biggest exchange in the world in terms of cash transaction volumes, which increase 10 times approximately as compared to July 2020. The transaction volumes reach the 668$ billion, which is the highest number of transaction volumes ever achieved.
Their platform offers a variety of services that includes stock tokens, spot trading, and cryptocurrency derivatives to digital wallets.
In the future, all the cryptocurrency exchanges need to be licensed in Hong Kong, as the country plans to bring in legislation. And under this legislation, all the licensed members will only offer services to professional investors.