Only two platforms, HashKey and OSL, have secured a licence for retail cryptocurrency trading services in Hong Kong.

According to the commission, four other companies have applied for licences: HKVAX, HKBitEx, Hong Kong BGE and Victory Fintech Company.

Lee pointed out that one of the government’s positions on virtual assets trading was to ensure information disseminated would be transparent and as clear as possible.

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“But I must repeat, [investors’] interests will be best protected if they invest on platforms which have been licensed. That means these platforms will be properly regulated, there will be proper risk control and proper standards that they must fulfil,” he warned.

Lee also called on “people who are engaged in the business” to work alongside the government on educating investors on cryptocurrency products and risk assessment.

Centralised cryptocurrency exchanges offering services to Hong Kong investors have been given a year from June 1 to ensure compliance with the new regulatory regime or wind down their operations in the city.

The commission resisted disclosing pending applications only a week ago, arguing there could be a false sense of security since not all applicants would qualify for licences.

Critics said the grace period, coupled with the “information vacuum” on applicants, had enabled JPEX’s dubious operations.

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Cash-for-crypto shops and social media influencers associated with JPEX have falsely claimed the platform was seeking a licence even though it has not filed an application, according to a statement from the commission issued on September 13.

The platform has since slapped an exorbitant fee on customers seeking to withdraw their assets and remained defiant despite a string of police operations targeting its local changer shops and influencers.

Police have frozen HK$15 million in bank accounts and seized three properties valued at HK$44 million. The Post earlier learned police were trying to intercept the outflow of tokens from digital currency wallets linked to JPEX, and were also seeking help from Interpol to help freeze assets.

Several cryptocurrency exchanges have claimed that they are in the process of securing a Hong Kong licence but are not part of the commission’s four-firm list, including OKX, which told media earlier this month it was in the “final stage” of its “preparation” for application submission.

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OKX global chief commercial officer Lennix Lai said on social media on Monday that the exchange was “on track” to formally submit its application by the end of next month.

Louis Li Sze-chung, a blockchain expert and adviser to tech start-up association 852Web3, said the absence of major industry names such as OKX and Huobi on the SFC’s list came as a surprise after their high-profile mentions of “preparations” for application submissions through press releases and media interviews.

He said he believed companies saw receiving a licence in the city as good publicity, adding: “People feel that Hong Kong is a place of traditional finance that has been uncomfortable with virtual assets, so this attitude change has been closely watched globally.”

But that change also presented challenges for those seeking a licence, he said, as one criteria was to appoint “responsible officers” who had “relevant industry experience”. Such professionals were scarce in a city that was new to regulating virtual assets, he noted.

HKVAX announced last month that it received “approval-in-principle” from the regulator and would become “the third licensed virtual asset operator in Hong Kong”.

Anthony Ng, Co-Founder and CEO of HKVAX, said he did not wish to comment on the application “given the current market situation”.

Two top executives also appeared to have left their roles at HKBitEX, another applicant. Co-founder and chief strategy officer Ken Lo and head of exchange Heddy Tsang ceased working for the company in July, according to their personal LinkedIn pages.

Both were still listed on the company’s website as of Tuesday with their pre-July titles.

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Applicant Hong Kong BGE is a member of listed company HKE Holdings, which is chaired by Lin Ho-man. Lin made headlines last year when he initiated a winding-up petition against Chinese property developer Evergrande in Hong Kong’s high court.

The final firm on the SFC list is Victory Fintech Company, also known as VDX, a subsidiary of local securities broker Victory Securities, whose chief executive director is Hong Kong Securities Association chairwoman Katerine Kou Kuen.

The SFC in 2006 suspended Kou for one month and reprimanded Victory, fining the company HK$50,000 for recklessly pledging client securities to banks.

The watchdog accused Victory of failing to implement an effective internal control system to ensure the securities were properly allocated to the correct designated accounts.

Additional reporting by Clifford Lo