Hong Kong OTC Store Fraud Highlights Regulatory Gaps in Cryptocurrency Exchanges

According to Odaily, a man in Hong Kong sought to exchange 1 million Hong Kong dollars for USDT at an offline OTC store. However, the store took the cash without transferring the equivalent amount in USDT to him. The incident has been reported to law enforcement authorities. Hong Kong Legislative Council member Ng Kit Chuang described the situation as 'brazen' and highlighted that there are over 200 similar virtual currency exchange shops in Hong Kong. These establishments operate without licenses and are not protected or regulated by any Hong Kong laws. Ng urged the Hong Kong government to expedite consultations and legislative procedures to address these regulatory gaps.