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Hong Kong Securities Regulatory Authority reports three crypto firms for fraud
Hong Kong’s Securities and Futures Commission (SFC) has warned investors about the activities of three companies accused of fraudulent activities related to virtual assets. Some of the companies are alleged to be engaged in cryptocurrency-related activities without proper licenses. This year, the SFC has flagged several companies involved in similar activities to protect investors.
SFC warns against Tokencan, VBIT and HKD.com
Financial regulators have 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 crimes by the three platforms. According to the release, Tokencan operated in Hong Kong without a license and provided digital asset trading services to customers.
Additionally, the company has provided false information to the regulator, in addition to investors reporting withdrawal issues that led to the company’s account being frozen. Likewise, VBIT exchange is alleged to have marketed its services without a license, including false claims on its website to be regulated by different authorities.
HKD.com Corporation has adopted a name closely related to another company without any affiliation. Users were asked to deposit funds but soon after reported some difficulties.
“Under the Anti-Money Laundering and Terrorist Financing Ordinance, it is an offense to carry on a business of providing a virtual asset service (for example, operating a virtual asset exchange) in Hong Kong and/or actively marketing such services to Hong Kong investors without a license.”
Hong Kong steps up regulatory efforts
Authorities alerted Hong Kong police to block websites and social media pages, and sent numerous warnings to users to avoid further casualties. Hong Kong regulators have published several guidelines to simplify different aspects of the cryptocurrency market and protect users.
“Online investment scams can involve any type of asset and are perpetrated through multiple channels, and investors can suffer substantial losses. They should remain vigilant and watch out for fraud when making investment decisions.”
Read also: SEC Sues ConsenSys for Conducting Securities Through MetaMask
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David is a financial news contributor with 4 years of experience in Blockchain technology and cryptocurrencies. He is interested in learning about emerging technologies and has an eye for the latest news. Staying up to date on trends, David has reported in several niches including regulation, partnerships, cryptocurrencies, stocks, NFTs, etc. Away from the financial markets, David cycles and rides horses.
The content presented may include the author’s personal opinion and is subject to market conditions. Do your own market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.