TechFlow News, February 14 — According to an investigation by Hong Kong's Wen Wei Po, regulatory loopholes exist in Hong Kong's over-the-counter (OTC) cryptocurrency exchange market. The investigation found that about half of OTC exchanges allow cryptocurrency trading without requiring real-name verification, with USDT being the most popular due to its stability.
The report revealed approximately 15 cryptocurrency OTC outlets and three cryptocurrency ATMs operating within a commercial building in Mong Kok. Some OTCs only require KYC verification for transactions exceeding HK$120,000, and even then only during purchases. Staff from one OTC outlet disclosed that the minimum transaction amount is HK$50,000 and "no certification is required," suggesting customers use personal e-wallets that do not require real-name registration to circumvent regulations.
Currently, these OTC operators are not required to submit transaction reports to law enforcement agencies, significantly increasing the difficulty of tracking fund flows.
