News
Hong Kong Securities Regulatory Authority reports three cryptocurrency firms for fraud
Hong Kong’s Securities and Futures Commission (SFC) has warned investors about the activities of three companies accused of fraudulent activity involving virtual assets. Some companies are alleged to be carrying out cryptocurrency-related activities without proper licensing. This year, the SFC has reported 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 statement on June 28,
SFC highlighted alleged crimes of the three platforms. According to the statement, Tokencan was operating in Hong Kong without a license and providing digital asset trading services to customers.
Additionally, the company has provided false information to the regulator, along with investors reporting withdrawal issues that have led to the company’s account being frozen. Similarly, VBIT exchange is alleged to have marketed its services without a license, including false claims on its website that it is regulated by multiple authorities.
HKD.com Corporation has adopted a name closely related to another company with no affiliation. Users were asked to deposit funds, but soon after reported some difficulties.
“Under the Anti-Money Laundering and Countering the Financing of Terrorism Ordinance, it is an offence to carry on a business of providing a virtual asset service (i.e., operating a virtual asset exchange) in Hong Kong and/or actively market such services to Hong Kong investors without a licence.”
Hong Kong steps up regulatory efforts
Authorities have advised Hong Kong police to block websites and social media pages, including multiple warnings to users to avoid further casualties. regulators in Hong Kong have released 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
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 written in several niches including regulation, partnerships, cryptocurrencies, stocks, NFTs, etc. Away from the financial markets, David cycles and rides horses.