The Hong Kong Securities and Futures Fee (SFC) has issued a caution to traders referring to 3 entities suspected of enticing in fraudulent actions associated with digital property or working with no license. This building comes as Hong Kong targets to place itself as a crypto hub to create an enabling atmosphere to force building within the crypto area.
SFC Lists Tokencan, VBIT, HKD.com As Scams
In a press free up on June 28, the Hong Kong SFC positioned a fraud alert on 3 firms beginning with Tokencan, which the Fee described as a purported digital asset buying and selling platform (VATP).
The SFC mentioned that Tokencan deceived traders by way of the usage of social media channels to force engagement to its site the place it claimed to provide crypto buying and selling products and services. On the other hand, following investments, shoppers encountered problems with withdrawals and have been in the end barred from having access to their accounts. Particularly, the SFC states that Tokencan additionally logged in false data in its registration with the Fee.
The VBIT Alternate used to be every other entity accused by way of the SFC of actively posturing as a VATP regardless of the loss of license from the Fee. As well as, VBIT Alternate has additionally falsely claimed to be registered with a number of native government and jurisdictions.
Hong Kong’s SFC additionally warned traders of the HKD.com Company, an organization with an similar brand and title as every other VATP however without a affiliations. Very similar to Tokencash, traders have additionally reported demanding situations in taking flight their property from HKD.com.
The securities regulator assures all traders that enforcement movements were taken towards all aforementioned entities with the police pressure shutting down all affiliated internet sites and social media channels. Nonetheless, they suggested all traders to stay vigilant and interact with most effective authorized buying and selling products and services.
The Fee additionally reiterated to present and potential VATPs the need of gaining a license prior to starting off operation as stipulated by way of Hong Kong’s regulations underneath the Anti-Cash Laundering and Counter-Terrorist Financing Ordinance.
Hong Kong’s Adventure To Being A Crypto Hub
Along with cracking down on fraudulent and unregistered crypto platforms, Hong Kong continues to do so against developing an international crypto hub.
In April, Hong Kong authorized the release of spot Ethereum and Bitcoin exchange-traded finances (ETF). For context, a place ETF is an funding fund that without delay holds a commodity. Spot crypto ETFs permit traders to achieve direct publicity to an asset’s worth motion and are an important step within the mainstream adoption of digital property.
As well as, reported that the Hong Kong Institute for Financial and Monetary Analysis has performed government-sponsored analysis on decentralized finance and the Metaverse because the island country targets to damage new frontiers in those two key sectors of the crypto area.
Featured symbol from NW Flags, chart from Tradingview