Applications for virtual assets trading licenses began to be accepted on 1 Jun,2023.
The SFC welcomes the licence of virtual asset trading platform operators that are ready to comply with SFC standards and will implement
a series of appropriate measures to protect such investors.This includes ensuring suitability, good governance, enhanced token due diligence,
inclusion and disclosure in the process of establishing business relationships with customers.
Monitor- Until Now, the companies holding virtual asset licenses in Hong Kong are known as HashKey and OSL, while Huobi and OKX
have also indicated their intention to apply for an exchange license in Hong Kong and set up offices there.
The SFC reminds that no virtual asset trading platform has been approved to provide services to retail investors and that most of the existing
publicly accessible virtual asset trading platforms are not regulated by the SFC.
Wide fluctuation with Marketing Price- The price of cryptocurrencies can change sharply due to market sentiment and may rise sharply in
a short period of time or plummet, which is very speculative and not suitable for defensive investors looking for stable returns.
Bubble Risk- If the bubble bursts, the price of cryptocurrencies can plummet by 50% or more in a short period of time.
Hacker Attack- Cryptocurrencies held by investors are at risk of being stolen by hackers.
Wallet Security Issues- Even if investors store cryptocurrencies in cryptocurrency wallets, they may still suffer losses due to various reasons,
including technical failures, virus intrusion of wallets, etc.
Risk of permanent loss- Once you lose your PIN, you have no way to prove that you are the holder of the cryptocurrency. In other words,
you will lose the cryptocurrency permanently.