NewsletterHong 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.
Also Read: Memecoins Becoming Livewire To US Hedge Funds: Report
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Trump Family Loses Over $1B as Crypto Investments In Multiple Holdings Crashes
- Tom Lee’s Bitmine Immersion Buys $82M in Ethereum, BMNR Stock Jumps
- Crypto Market Rebounds Ahead of Key U.S. PPI, Jobless Claims, and Fed Inflation Reports
- JPMorgan Faces Heavy Backlash from Grant Cardone, Jack Mallers, Max Keiser, Other Bitcoin Advocates
- Expert Projects $30M Volume for Franklin Templeton XRP ETF as Trading Begins Today
- Hedera Price Set for Explosive 30% Rally as Bulls Trigger Breakout
- BTC Price Prediction: Bitcoin Crosses $86k, Is a Drop Over?
- Here’s Why XRP Price Will Hit $3 This Week
- Zcash Price Soars 10% as OKX Eyes ZEC Relisting
- WLFI Price Soars 17%: What’s Fueling the Surge?
- Dogecoin Price Eyes $0.2 Rally Ahead of Grayscale’s NYSE ETF Debut on November 24
