Hong Kong regulator warns Binance Group entities are operating without a licence

Hong Kong’s Securities and Futures Commission (SFC) said that the companies within the Binance Group do not hold licences to operate in the jurisdiction.

The regulator cited local law, under which tokenised shares fall under the definition of securities.

“The promotion and/or distribution of such tokens in Hong Kong or among local investors constitutes ‘regulated activity’ and requires an SFC licence,” the statement said.

The authority reminded that violators may face criminal liability.

The SFC urged investors to exercise caution and added that it had received complaints from users who “encountered difficulties withdrawing fiat currencies or digital assets from accounts on unregulated platforms.”

Earlier, Binance said that, from 14 October it would discontinue support for tokenised shares.

Earlier in June, the United Kingdom’s Financial Conduct Authority banned Binance Markets Limited from any regulated activity in the country without prior written approval.

The Cayman Islands have begun examining Binance’s operations, Thailand accused the company of operating without a licence, Japan issued another warning.

Polish regulators warned consumers about the risks of interacting with the platform, and Italy and Malta warned about Binance’s unregulated activity.

Against the backdrop of regulatory pressure, CEO Changpeng Zhao published an open letter in which he outlined Binance’s plans to ensure compliance and protect customers.

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