The Hong Kong Securities and Futures Commission (SFC) has issued a warning to investors about three firms involved in virtual asset fraudulent activities.
On June 28, the SFC raised concerns on Tokencan, VBIT Exchange, and HKD.com Corporation. These firms are said to be working without licenses and sometimes they are involved in fraudulent activities.
Tokencan can work in Hong Kong without obtaining a license and offers trading in digital assets to customers. It also submitted false documents to the SFC and investors complained of withdrawal problems, which resulted in freezing of accounts.
VBIT Exchange promoted its services without a license and stated that it was regulated by several authorities on its website. The SFC has raised these issues and is currently researching them.
HKD. com Corporation assumed the name of another firm it has no connection with. The users were told to deposit some amount of money, but they later realized challenges in accessing the same.
The SFC has reported the matter to the Hong Kong Police to ensure that the firms’ websites and social media pages are closed to avoid any other people falling prey. The regulator also highlighted the need to be on the lookout for investment frauds in the online space, which can occur across all types of assets and result in significant loss.
The SFC said, “Under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, it is an offense to carry on a business of providing a virtual asset service (ie, operating a virtual asset exchange) in Hong Kong and/or actively market such services to Hong Kong investors without a license.”
The Hong Kong authorities are increasing the pressure on the crypto market and are now actively seeking to regulate it and safeguard investors. Several guidelines have been published to facilitate different segments of the crypto market, protecting the users.
Potential investors are encouraged to be more cautious and avoid falling prey to scams while making investment choices.
Also Read: SFC Convicts Telegram Host for Unlicensed Investment Advice
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