Hong Kong’s SFC Put Out Fraud Alert On Three Exchanges

The Hong Kong Securities and Futures Fee (SFC) has issued a warning to traders relating to three entities suspected of partaking in fraudulent actions associated to digital property or working with no license. This improvement comes as Hong Kong goals to place itself as a crypto hub to create an enabling surroundings to drive improvement within the crypto house.

SFC Lists Tokencan, VBIT, HKD.com As Scams

In a press launch on June 28, the Hong Kong SFC positioned a fraud alert on three firms beginning with Tokencan, which the Fee described as a purported digital asset buying and selling platform (VATP). 

The SFC said that Tokencan deceived traders through the use of social media channels to drive engagement to its web site the place it claimed to supply crypto buying and selling companies. Nonetheless, following investments, prospects encountered points with withdrawals and had been ultimately barred from accessing their accounts. Notably, the SFC states that Tokencan additionally logged in false info in its registration with the Fee. 

The VBIT Trade was one other entity accused by the SFC of actively posturing as a VATP regardless of the dearth of license from the Fee. As well as, VBIT Trade has additionally falsely claimed to be registered with a number of native authorities and jurisdictions. 

Hong Kong’s SFC additionally warned traders of the HKD.com Company, an organization with an an identical brand and title as one other VATP however with no affiliations. Much like Tokencash, traders have additionally reported challenges in withdrawing their property from HKD.com.

The securities regulator assures all traders that enforcement actions have been taken in opposition to all aforementioned entities with the police pressure shutting down all affiliated web sites and social media channels. However, they suggested all traders to stay vigilant and interact with solely licensed buying and selling companies. 

The Fee additionally reiterated to present and potential VATPs the need of gaining a license earlier than commencing operation as stipulated by Hong Kong’s legal guidelines underneath the Anti-Cash Laundering and Counter-Terrorist Financing Ordinance. 

Hong Kong’s Journey To Being A Crypto Hub

Along with cracking down on fraudulent and unregistered crypto platforms, Hong Kong continues to take motion in the direction of creating a world crypto hub.

In April, Hong Kong authorised the launch of spot Ethereum and Bitcoin exchange-traded funds (ETF).  For context, a spot ETF is an funding fund that instantly holds a commodity. Spot crypto ETFs enable traders to realize direct publicity to an asset’s value motion and are a big step within the mainstream adoption of digital property.

As well as, Bitcoinist reported that the Hong Kong Institute for Financial and Monetary Analysis has carried out government-sponsored analysis on decentralized finance and the Metaverse because the island nation goals to interrupt new frontiers in these two key sectors of the crypto house.

Featured picture from NW Flags, chart from Tradingview