• Crypto trading is overshadowed by regulatory authorities in China again.
• Binance is accused of having security and token transfer problems.
The SFC in Hong Kong warns about crypto trading with unregulated tokens, such as Bitcoin on the Binance platform. The commission issued an announcement last Friday where it warned that crypto exchanges not regulated could be dangerous.
SFC pointed to Binance as the leading cryptocurrency platform that freely offers its services, and reflected in the need to regulate. The commission even notifies that Binance does not have the authority to carry out its activities with cryptocurrencies in the country.
These problems with Binance and SFC are associated with the announced regulations from Beijing. Hong Kong opens the way to a new prohibitions panorama on the most traded tokens such as Bitcoin and Ethereum. The commission details these tokens are supported by various wallets backed in foreign countries.
SFC will ask for crypto trading certification
Among other developments, the Hong Kong commission thinks that crypto trading with the most highly traded tokens is overvalued. He even talks about tokens as “securities” that the investor can use for actual transactions or as a joke.
However, the regulatory authority insists that if the demanded tokens are taken as a trade, they need to be approved. SFC will ask for crypto trading certification if trading with the most highly traded tokens increases. But no details were given about the actions that the commission will take on this crypto.
The Compliance CEO on the commission, Thomas Atkinson, said that traders should be on the lookout for these crypto platforms. Atkinson dares to remind investors that Binance is not a safe crypto trading platform. He even says that the platform can be hacked, causing merchants to lose their money.
SFC guided by lawsuits against Binance
The commission bases its allegations on the lawsuits it has found about Binance and its crypto trading. SFC indicates that traders are complaining about Binance issues and virtual currency withdrawals. The commission adds that the investor does not feel safe using Binance and even less with so many accusations against it.
The UK, Cayman Islands, Thailand, Japan, Lithuania, and Italy join the regulations against the Binance platform. Regulators agree that the cryptocurrency platform has security issues and lends itself to money laundering. However, the Binance CEO defended himself by clarifying that his platform complies with all control protocols.
Hong Kong regulations increase as other countries in the world adopt cryptocurrencies. El Salvador joins such countries that rely on crypto trading, especially Bitcoin.
But authorities attack the crypto market while creating their cryptocurrencies to profit from the new financial system. The SFC in Hong Kong is likely just wanting to restrict Binance and create a regulated cryptocurrency platform.