TechFlow news, July 16 — The Securities and Futures Commission (SFC) of Hong Kong issued a "Warning Statement on Unregulated Virtual Asset Platforms," stating that "it has noted that Binance has provided trading services for stock tokens in multiple jurisdictions, and is concerned that these services may also be offered to investors in Hong Kong. The SFC wishes to clarify that no entity within the Binance Group holds a license or is registered to conduct 'regulated activities' in Hong Kong."
The SFC stated that stock tokens are highly likely to constitute "securities" under the Securities and Futures Ordinance in Hong Kong and therefore fall within the regulatory purview of the SFC. Furthermore, "any person offering such tokens to the Hong Kong public without recognition or registration by the SFC may commit an offense. Any violation of the relevant provisions may lead to prosecution, and upon conviction, criminal penalties will apply."
