The Securities and Futures Commission (SFC) of Hong Kong has launched a public consultation proposing tighter controls over how unregulated businesses present themselves – particularly those using terms like “exchange,” “trading platform,” and “virtual assets” in their brand or marketing.
The proposal aims to stop unlicensed entities from adopting names that may mislead the public into believing they are SFC-regulated, especially amid the rapid growth of Virtual Asset Trading Platforms (VATPs).
What’s New
The SFC is proposing to expand the current list of restricted titles under the Securities and Futures Ordinance (SFO) – including new terminology commonly used by unregulated crypto platforms, fintech apps, and trading sites.
The new rules would also extend under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), since VATPs are covered under both legal frameworks.
Terms that may soon require SFC approval include:
- “Trading platform”
- “Virtual asset exchange”
- Any name implying affiliation with an existing regulated entity or exchange
- Terms referring to products or infrastructures regulated under the SFO (e.g., “clearing facility”)
The SFC has invited public feedback on the proposals until 11 August 2025.
Misleading Names May Soon Cost You
While focused on the Hong Kong market, this move is part of a broader global shift toward tightening brand-related regulatory gaps, especially in fintech and crypto-linked trading platforms.
For prop firms, especially those offering crypto trading, tokenized assets, or branded “prop exchanges,” this is a warning:
Misleading branding may soon attract direct regulatory scrutiny – even if your business model doesn’t require a license.
As jurisdictions like Hong Kong lead the way, firms operating internationally or with multi-brand portfolios should review naming conventions and jurisdictional exposure.
Stay with PropInsider for updates on global regulatory moves shaping the future of trading.
