The Securities and Futures Commission (SFC) issued a warning
today about several entities suspected of engaging in fraudulent virtual
asset-related activities. These entities are also purportedly operating virtual
asset trading platforms (VATPs) in Hong Kong without the required licenses.
SFC Flags Fraudulent Platforms
Under the Anti-Money Laundering and Counter-Terrorist
Financing Ordinance, any provision or active marketing of virtual asset
services to Hong Kong investors without a licence is strictly prohibited. The
entities identified in this regard are:
Tokencan: This platform claims to provide cryptocurrency
trading services in Hong Kong without a licence. Tokencan uses social media to
direct investors to its websites for cryptocurrency investments. The SFC noted
that Tokencan provided false information, falsely claimed to have filed a
licence application with the SFC, and has had investor reports of frozen
accounts and withdrawal issues.
VBIT Exchange: This entity is suspected of marketing its
purported VATP services to Hong Kong investors without a licence. It falsely
claimed to be regulated by authorities in various jurisdictions on its website.
HKD.com Corporation: This entity uses a name and logo very
similar to another VATP it is not associated with. Investors were asked to
deposit 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 have
taken steps to block access to the relevant websites and social media pages.
However, the public should remain cautious as scammers may continue to create
websites with similar domain names.
Online investment scams can involve any type of asset and
are often conducted through various channels, leading to significant losses for
investors. The SFC advises the public to stay vigilant and be aware of
potential fraud when making investment decisions.
“Investors may risk losing their entire investment held on
the platform if it ceases operation, collapses, is hacked or otherwise suffers
from any misappropriation of assets. If in doubt about the licensing status of
a VATP, please refer to the SFC’s List of licensed virtual asset trading
platforms,” the authority stated.
This article was written by Tareq Sikder at www.financemagnates.com.
