The Hong Kong Securities and Futures Fee (SFC) has issued a warning to buyers relating to three entities suspected of partaking in fraudulent actions or working and not using a license associated to digital belongings. The event comes as Hong Kong goals to place itself as a cryptocurrency hub to create a conducive setting to advertise the event of the cryptocurrency sector.
China Securities Regulatory Fee lists Tokencan, VBIT, and HKD.com as scams
in a Press release On June 28, the Hong Kong Securities Regulatory Fee issued a fraud alert on three firms together with Tokencan, which the Securities Regulatory Fee described as suspected digital asset buying and selling platforms (VATP).
The SFC stated Tokencan deceived buyers through the use of social media channels to extend engagement on web sites it claimed to supply cryptocurrency buying and selling companies. Nevertheless, after investing, prospects encountered withdrawal points and had been ultimately banned from accessing their accounts. It’s price noting that the China Securities Regulatory Fee identified that Tokencan additionally recorded false data when registering with the China Securities Regulatory Fee.
VBIT Change is one other entity accused by the SEC of actively impersonating VATP regardless of not being licensed by the SEC. Moreover, VBIT Change additionally falsely claimed to be registered with a number of native authorities and jurisdictions.
The Hong Kong Securities and Futures Fee additionally issued a warning to buyers in HKD.com Company, which shares the identical brand and identify with one other VATP however has no affiliation. Just like Tokencash, buyers have reported challenges when withdrawing belongings from HKD.com.
The securities regulator assured all buyers that enforcement actions have been taken in opposition to all of the above-mentioned entities, and the police have shut down all affiliated web sites and social media channels. Nonetheless, they advise all buyers to stay vigilant and solely use licensed buying and selling companies.
The Committee additionally reiterated to present and future VATPs that in accordance with the provisions of the Anti-Cash Laundering and Counter-Terrorism Financing Ordinance of Hong Kong legislation, they have to receive a license earlier than commencing operations.
Hong Kong’s journey to changing into a cryptocurrency hub
Along with cracking down on scams and unregistered cryptocurrency platforms, Hong Kong continues to take motion to determine itself as a worldwide cryptocurrency hub.
Hong Kong accredited the launch of spot items in April Ethereum and Bitcoin Change Traded Funds (ETFs). For context, spot ETFs are funding funds that maintain commodities immediately. Spot crypto ETFs enable buyers to immediately perceive the worth adjustments of belongings, which is a vital step within the mainstream adoption of digital belongings.
Moreover, Bitcoinists report The Hong Kong Institute of Financial and Monetary Analysis has performed analysis into decentralized finance and the Metaverse with authorities funding, because the island nation goals to interrupt new floor in these two key areas of the cryptocurrency house.
Featured picture from NW Flags, chart from Tradingview
