Hong Kong’s Financial Regulator Warns Investors On Two Crypto Trading Platforms
Highlights
- The SFC flagged the operations of two crypto firms.
- The firms operated under the names of “CBEX Group” and “Bitget Pro.”
- Authorities have proceeded to take down fake websites.
Hong Kong’s financial regulator has flagged the activities of two virtual assets platforms for suspected fraudulent activities. In a recent release, the Securities and Futures Commission (SFC) warned users about the operations of companies trading under the names “CBEX Group” and “Bitget Pro”.
“The Securities and Futures Commission (SFC) today warns the public of entities operating under the names of “CBEX Group” and “Bitget Pro” for suspected virtual asset-related fraudulent activities (Notes 1 and 2).”
The SFC took action after multiple users reported withdrawal difficulties. According to the release, it is believed that both firms might have deceived users with fake withdrawal records.
SFC Moves To Block Fake Websites
The Hong Kong financial regulator placed both firms on the SFC’s alert list and warned users to be vigilant. Hong Kong authorities have ramped up efforts to prevent users from faking victims to bad actors in recent times. Scammers can deploy fake websites similar to a trading platform to exploit users.
The SFC requested the Hong Kong police to block the flagged websites while issuing more warnings to users about fraudulent activities in its jurisdiction.
“Online investment scams may involve any type of assets and are perpetrated through multiple channels, and investors can suffer substantial losses. Therefore, investors should stay vigilant and beware of fraud when making investment decisions.”
Hong Kong Ramps Up Regulatory Efforts
The collapse of FTX in 2022 was a turning point in crypto regulations as most jurisdictions rolled out new guidelines for crypto firms. Hong Kong has consistently released rules and sessions with relevant stakeholders in the sector.
While investor protection remains key, the country seeks to promote the web3 landscape becoming a leader in associated technology. This blend of certain rules has attracted crypto firms to the market. This week, the country’s Securities Association recommended a level of self-governance for crypto firms.
Per the statement, it will drive development in the sectors as firms respond to certain issues like in other regions.
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