The Securities and Futures Fee of Hong Kong (SFC) has issued a warning to traders relating to three entities suspected of participating in fraudulent actions or working with out a license associated to digital property. The event comes as Hong Kong goals to place itself as a cryptocurrency hub to create a conducive atmosphere to advertise the event of the cryptocurrency sector.
China Securities Regulatory Fee lists Tokencan, VBIT, and HKD.com as scams
In a press launch on June 28, Hong Kong’s Securities and Futures Fee issued fraud alerts in opposition to three corporations together with Tokencan, which the fee described as so-called digital asset buying and selling platforms (VATPs).
The SFC stated Tokencan deceived traders 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 finally 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 Trade is one other entity accused by the SEC of actively impersonating VATP regardless of not being licensed by the SEC. As well as, VBIT Trade 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 traders in HKD.com Company, which shares the identical brand and title with one other VATP however has no affiliation. Much like Tokencash, traders have reported challenges when withdrawing property from HKD.com.
The securities regulator assured all traders 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 traders to stay vigilant and solely use licensed buying and selling companies.
The Committee additionally reiterated to current 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 acquire 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 ascertain itself as a world cryptocurrency hub.
In April, Hong Kong permitted the launch of spot Ethereum and Bitcoin exchange-traded funds (ETFs). For context, spot ETFs are funding funds that maintain commodities instantly. Spot crypto ETFs enable traders to instantly perceive the worth modifications of property, which is a vital step within the mainstream adoption of digital property.
Moreover, Bitcoinist stories that the Hong Kong Institute of Financial and Monetary Analysis has launched government-funded analysis on decentralized finance and the Metaverse, 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
