On 10 January 2025, the Hong Kong Securities and Futures Commission (HK SFC) issued a public warning against an unlicensed virtual asset trading platform (VATP) known as International Standard Carbon Assets Technology Co., Limited, or “iSCAT” and “iSCAT Exchange”. This platform, which claims to provide cryptocurrency trading services, has not been granted a licence by the HK SFC and is therefore operating unlawfully under Hong Kong regulations.
The HK SFC in its publication, revealed that “iSCAT” has been promoting its services through social media, directing potential investors to its website and mobile application for trading cryptocurrencies. Such operations fall under the category of regulated activities as defined in Hong Kong’s Securities and Futures Ordinance (HK SFO) and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. These laws prohibit entities from carrying out virtual asset services, including the operation of virtual asset exchanges, or marketing such services to Hong Kong investors without the necessary licence.
In response, the HK SFC has added “iSCAT” and its associated website to its Suspicious Virtual Asset Trading Platforms Alert List as of 10 January 2025. The Commission then elaborated on the risks associated with unregulated trading platforms, cautioning that investors could lose their entire holdings in cases of operational failure, cyberattacks, or asset misappropriation. To avoid such risks, the HK SFC advises the public to verify the licensing status of any VATP through its official list of licensed platforms.
This announcement came just days after the HK SFC’s most recent efforts to tighten its monitoring of virtual asset trading platforms. HK SFC has moved quickly to address potential threats to investors, showing its vigilance in combating unlawful activities in the rapidly evolving cryptocurrency sector.
(Source: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=25PR3)
