Hong Kong Securities Regulator Flags Three Crypto Firms for Fraud
The Hong Kong Securities and Futures Commission (SFC) has warned investors about the activities of three firms accused of virtual asset fraud activities. Some companies are alleged to be carrying out crypto-related activities without a proper license. This year the SFC flagged many firms engaging 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 dated June 28, SFC highlighted the alleged crimes of the three platforms. According to the statement, Tokencan was operating without a license in Hong Kong and providing digital asset trading services to customers.
Additionally, the firm provided false information to the regulator and investors reported withdrawal problems, leading to the firm’s accounts being frozen. Similarly, VBIT exchange is alleged to be marketing its services without a license, including making false claims on its website, which will be regulated by various authorities.
HKD.com Corporation adopted a name closely associated with another company without any affiliation. Users were instructed to deposit funds, but difficulties were reported shortly thereafter.
Hong Kong Intensifies Regulatory Efforts
Authorities warned the Hong Kong Police to block websites and social media pages that contain numerous warnings to users to prevent further victimization. Hong Kong regulators It has issued several guidelines to regulate various aspects of the crypto market with the aim of protecting users.
“Online investment scams can involve any type of asset and occur through multiple channels, leaving investors exposed to significant losses. “They should be careful when making investment decisions and be wary of fraud.”
Then read on: SEC Sues ConsenSys for Conducting Securities Through MetaMask
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David is a financial news writer with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has a talent for keeping up with breaking news. Staying on top of trends, David is knowledgeable about regulations, partnerships, crypto assets, stocks, NFTs, etc. He reported in various fields such as. Away from the financial markets, David cycles and rides horses.
The content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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