NewsletterHong Kong’s Securities Regulator Flags Three Crypto Firms For Fraud
Highlights
- Hong Kong’s SFC flags three firms for potential crypto fraud.
- The companies were accused of operating without license including fraudulent activities.
- Hong Kong’s authorities are ramping up efforts to protect investors.
The Hong Kong Securities and Futures Commission (SFC) warned investors about the activities of three firms accused of virtual asset fraudulent activities. Some companies are alleged to carry out crypto-related activities without a proper license. This year, the SFC has flagged several firms involved in similar activities to protect investors.
SFC Warns Against Tokencan, VBIT and HKD.com
The financial regulators warned users in the jurisdiction against the activities of Tokencan, VBIT Exchange, and HKD.com Corporation. In a June 28 release, the SFC highlighted alleged offenses of the three platforms. According to the release, Tokencan operated in Hong Kong without a license and provided digital asset trading services to customers.
Furthermore, the firm provided false information to the regulator coupled with the fact that investors reported withdrawal issues which led to an account freeze on the firm. Similarly, VBIT exchange is alleged to have marketed its services without a license including false claims on its website to be regulated by several authorities.
HKD.com Corporation adopted a name closely related to another firm without any affiliations. Users were instructed to deposit funds but soon after reported some difficulties.
“Under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, it is an offense to carry on a business of providing a virtual asset service (ie, operating a virtual asset exchange) in Hong Kong and/or actively market such services to Hong Kong investors without a license.”
Hong Kong Intensifies Regulatory Efforts
The authorities alerted the Hong Kong Police to block the websites and social media pages including multiple warnings for users to prevent more victims. Hong Kong regulators have released several guidelines to streamline several aspects of the crypto market to protect users.
“Online investment scams may involve any type of assets and are perpetrated through multiple channels, and investors can suffer substantial losses. They should stay vigilant and beware of fraud when making investment decisions.”
Also Read: SEC Sues ConsenSys For Conducting Securities Via MetaMask
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
- Expert Raoul Pal Reveals Crypto Market Outlook as Government Shutdown Ends
- Bitcoin Price Falls Below $100k Despite U.S. Government Reopening
- 21Shares Launches Crypto Market Index ETFs, Tracking Bitcoin, Ethereum, Solana, Dogecoin
- Michael Saylor Predicts Bitcoin Will Overtake Gold’s Market Cap by 2035
- Breaking: Canary’s Spot XRP ETF (XRPC) Goes Live on Nasdaq
- Top 3 Reasons Pi Network Price May Surge Despite the Incoming Token Unlock
- Solana Price Gears Up to $180 as DApp Revenue and DEX Volume Surge
- Cardano Price Rare Pattern Points to a 55% Crash as Key DeFi Metric Plunges
- Is Dogecoin Price Set for a Rally After 4.72 B $DOGE Whale Accumulation?
- XRP Price Shows Early Signs of Recovery Ahead of the First U.S. XRP ETF Debut—Rally Ahead?
- Will XRP, DOGE And ADA Surge After U.S. Government Shutdown Resolution?
