Crypto platform on alert lists opens Hong Kong office, prompting calls for scrutiny

A cryptocurrency trading platform has opened an office in Hong Kong, prompting concerns over regulatory oversight. Polar Tensor, a firm on Hong Kong and Canadian regulators' alert lists, established its office at One Hysan Avenue in Causeway Bay in August. The company touts itself as an advanced AI-powered trading platform, holding registrations in seven jurisdictions, including Hong Kong, Panama, and Montana.

Authorities have been monitoring Polar Tensor, which appears on the Hong Kong Securities and Futures Commission's (SFC) alert list and Canadian investment caution lists. While being on an alert list doesn't necessarily mean the company has broken the law, experts urge regulators to increase scrutiny of how such firms market regulated financial products.

Polar Tensor's office closure and sparse furnishings raise questions about the legitimacy of its operations, especially considering the legal requirement for unlicensed stablecoins to be offered to retail investors in Hong Kong. Hong Kong's licensing regime for stablecoins may complicate the platform's activities. Lawmakers like Johnny Ng Kit-chong call for stricter regulations governing how firms promote themselves, while blockchain expert Louis Li Sze-chung emphasizes the need for proactive investigations based on suspicions about a platform's operations.