Hong Kong’s Securities and Futures Commission (SFC) has issued a stern reminder to crypto trading platforms about the upcoming deadline for submitting their license applications. In a recent notice, the SFC emphasized that investors should only engage with licensed trading platforms. All crypto exchanges operating in Hong Kong must submit their license applications by February 29 or face the prospect of shutting down their operations in the region by May 31.

The SFC has advised investors to verify the regulatory status of the platforms they use. If investors are trading on platforms not listed as “licensed virtual asset trading platforms” or among the “virtual asset trading platform applicants,” the SFC recommends they prepare by closing their accounts early.

This directive follows the initiation of Hong Kong’s crypto licensing regime in June 2023, which permits licensed exchanges to offer retail trading services. To date, licenses have been granted to two platforms, HashKey and OSL.

Currently, the SFC is reviewing applications from 14 crypto firms, including prominent names like OKX and Bybit. HKVAEX, reportedly linked to Binance, also applied for a license on January 4.

The SFC’s actions are part of a broader effort to regulate the crypto market in Hong Kong. Christopher Hui, the Secretary for Financial Services and the Treasury, mentioned in a blog post that the government plans to introduce a consultation on a regulatory framework for over-the-counter crypto trading platforms. This move is in response to the increasing risks associated with unregulated platforms.

These developments indicate Hong Kong’s commitment to establishing a regulated and secure environment for cryptocurrency trading, aligning with global trends towards greater oversight of digital asset markets.