Jun 29, 2024 12:25
The Securities and Futures Commission (SFC) issued a warningtoday (Friday) about several entities suspected of engaging in fraudulent virtualasset-related activities. These entities are also purportedly operating virtualasset trading platforms (VATPs) in Hong Kong without the required licenses.
SFC Flags Fraudulent Platforms
Under the Anti-Money Laundering and Counter-TerroristFinancing Ordinance, any provision or active marketing of virtual assetservices to Hong Kong investors without a licence is strictly prohibited. Theentities identified in this regard are:
Tokencan: This platform claims to provide cryptocurrencytrading services in Hong Kong without a licence. Tokencan uses social media todirect investors to its websites for cryptocurrency investments. The SFC notedthat Tokencan provided false information, falsely claimed to have filed alicence application with the SFC, and has had investor reports of frozenaccounts and withdrawal issues.
VBIT Exchange: This entity is suspected of marketing itspurported VATP services to Hong Kong investors without a licence. It falselyclaimed to be regulated by authorities in various jurisdictions on its website.
HKD.com Corporation: This entity uses a name and logo verysimilar to another VATP it is not associated with. Investors were asked todeposit funds into designated bank accounts for investment purposes.Subsequently, investors reported difficulties in withdrawing funds.
Verify VATP Licensing Status
In response to the SFC's request, the Hong Kong Police havetaken steps to block access to the relevant websites and social media pages.However, the public should remain cautious as scammers may continue to createwebsites with similar domain names.
Online investment scams can involve any type of asset andare often conducted through various channels, leading to significant losses forinvestors. The SFC advises the public to stay vigilant and be aware ofpotential fraud when making investment decisions.
Investors may risk losing their entire investment held onthe platform if it ceases operation, collapses, is hacked or otherwise suffersfrom any misappropriation of assets. If in doubt about the licensing status ofa VATP, please refer to the SFCs List of licensed virtual asset tradingplatforms, the authority stated.
This article was written by Tareq Sikder at www.financemagnates.com.
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