Share this article
Hong Kong Orders Exchanges to Delist Securities Tokens
Hong Kong's securities watchdog has moved up regulatory actions against cryptocurrency exchanges and initial coin offering organizers.
By Wolfie Zhao
Updated Sep 13, 2021, 7:33 a.m. Published Feb 9, 2018, 2:35 a.m.
Make us preferred on Google
Hong Kong's securities regulator appears to be stepping up efforts to regulate cryptocurrency exchanges involved with initial coin offerings (ICOs).
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
In a statement released Friday, Hong Kong's Securities and Futures Commission (SFC) revealed it has sent warning letters to seven cryptocurrency exchanges advising that certain tokens being traded on their platforms may be defined as securities. Though the names of the exchanges were not disclosed, the SFC indicated they are either based in or connected to Hong Kong, and among the top 20 in volume globally.
According to the note, the move is part of a wider effort by the SFC to caution investors about the risks of trading cryptocurrencies, one that began more mildly with a warning on the possible risks of the ICO fundraising model on Sept. 5 of last year.
Notably, the SFC said that the inquiry may result in further action, but that so far the exchanges notified all responded to the inquiry.
"Most of these cryptocurrency exchanges either confirmed that they did not provide trading services for such cryptocurrencies or took immediate rectification measures, including removing relevant cryptocurrencies from their platforms," the release reads.
The SFC has also written to seven unnamed ICO organizers that are soliciting investors from Hong Kong and whose tokens are considered as securities by the agency.
Stepping back, the move follows the SFC's partnership with the Hong Kong government, one that recently found the two agencies launching a public campaign to educate citizens on potential risk, fraud and hacking issues regarding cryptocurrency.
Going forward, the agency said it will not bear further violation or repeated offense to Hong Kong's securities laws.
"We will continue to police the market and enforce when necessary," said Ashley Alder, the SFC's Chief Executive Officer. "But we are also urging market professionals to do proper gatekeeping to prevent frauds or dubious fundraising and to assist us in ensuring compliance with the law."
Hong Kong landscape image via Shutterstock
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Here’s why bitcoin’s is failing its role as a 'safe haven' versus gold
Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash.
What to know:
- During recent geopolitical tensions, Bitcoin lost 6.6% of its value, while gold rose 8.6%, demonstrating bitcoin's vulnerability in times of market stress.
- Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash, contrary to its reputation as a stable digital asset.
- Gold remains the preferred hedge for short-term risks, while bitcoin is better suited for long-term monetary and geopolitical uncertainties that unfold over years.
Top Stories
