Hong Kong's Securities and Futures Commission (SFC) has intensified its regulatory oversight, issuing a public warning against two unlicensed virtual asset trading platforms and imposing a HK$4 million fine on a licensed brokerage for control failures.
The SFC flagged Globiance X Limited, Globiance HK Limited (collectively Globiance), and CoinCola for operating without the required licenses. The regulator added these entities to its official alert list, suspecting them of conducting unlicensed activities. The SFC noted it has received investor complaints, including reports of difficulties withdrawing assets from platforms linked to Globiance. The regulator stressed that unlicensed platforms fall outside its supervisory reach, offering investors very limited protection and risking total loss of funds.
In a separate but related enforcement action, the SFC fined Saxo Capital Markets HK Limited HK$4 million for control failures spanning from November 2018 to November 2022. During this period, the broker allowed 136 clients, including 130 retail investors, to execute 1,446 transactions involving 32 complex, crypto-linked products that should have been restricted to professional investors.
The SFC found that Saxo HK failed to assess clients' knowledge of virtual assets, provide adequate risk disclosures, or conduct proper suitability assessments. A central failure was the firm's reliance on its parent company's group-level product identification systems, which did not flag the 32 products as virtual asset-related. This gap allowed the products to be made available on the platform without the required investor eligibility checks. Saxo HK only became aware of the issue after being notified by its parent in November 2022, prompting a self-report to the SFC.
The regulator considered several mitigating factors, including Saxo's self-reporting, cooperation, acceptance of findings, compensation to affected clients, and lack of prior disciplinary record. Notably, Saxo HK has since ceased regulated activities in Hong Kong.
These actions underscore Hong Kong's tougher stance on crypto oversight and its commitment to enforcing its virtual asset trading platform licensing regime. The SFC reiterated its message that investors should only use licensed platforms and verify a platform's license status before trading.
