Hong Kong’s Securities and Futures Commission (SFC) has issued a warning to investors regarding three entities suspected of engaging in fraudulent activities related to virtual assets or operating without a license. This development comes as Hong Kong aims to position itself as a crypto hub to create a conducive environment for development in the crypto space.
SFC classifies Tokencan, VBIT and HKD.com as scams
In a Press release On June 28, the Hong Kong SFC issued a fraud alert on three companies, starting with Tokencan, which the Commission described as a purported virtual asset trading platform (VATP).
The SFC said Tokencan misled investors by using social media channels to drive engagement on its website, where it claimed to offer cryptocurrency trading services. However, following investments, customers encountered withdrawal issues and were eventually banned from their accounts. Notably, the SFC states that Tokencan also registered false information when it registered with the Commission.
VBIT Exchange was another entity accused by the SFC of actively representing itself as a VATP despite not having a license from the Commission. In addition, VBIT Exchange also falsely claimed to be registered with several local authorities and jurisdictions.
The Hong Kong SFC also warned investors about HKD.com, a company with the same logo and name as another VATP but no affiliation. As with Tokencash, investors have also reported difficulties withdrawing their assets from HKD.com.
The securities regulator assures all investors that enforcement action has been taken against all the above-mentioned entities, with the police force shutting down all affiliated websites and social media channels. Nonetheless, they advised all investors to remain vigilant and only interact with authorized trading services.
The Commission also reiterated to current and potential VATPs the need to obtain a license before commencing their operations, as stipulated in Hong Kong laws under the Anti-Money Laundering and Anti-Money Financing Ordinance. of terrorism.
Hong Kong’s journey to becoming a crypto hub
In addition to cracking down on fraudulent and unregistered crypto platforms, Hong Kong continues to take steps to create a global crypto hub.
In April, Hong Kong approved the launch of spot Ethereum And Bitcoin exchange-traded funds (ETFs). As a reminder, a spot ETF is an investment fund that directly holds a commodity. Spot crypto ETFs allow investors to gain direct exposure to the price performance of an asset and are an important step in the mainstream adoption of virtual assets.
Additionally, Bitcoinist reported that Hong Kong’s Monetary and Financial Research Institute has conducted government-sponsored research into decentralized finance and the metaverse as the island nation aims to break new boundaries in these two key sectors of the crypto space.
Featured image of NW Flags, chart by Tradingview
