A man was blackmailed for HK$1 million in cash by a money exchange shop when he exchanged USDT offline. Currently, more than 200 similar shops in Hong Kong are not licensed.

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According to ChainCatcher, a man sought to exchange 1 million Hong Kong dollars in cash for USDT at an offline OTC store, but the store took the cash without transferring the funds to the owner. The case has been reported to law enforcement. Hong Kong Legislative Council member Wu Jiazhuang stated that the incident is "rampant" and noted that there are over 200 such virtual currency exchange stores in Hong Kong, all of which are unlicensed and not protected or regulated by any Hong Kong laws. Anyone can open a shop with a business registration. He urged the Hong Kong government to quickly initiate consultation and legislative procedures.

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