The Hong Kong Securities and Futures Commission (SFC) has issued a warning to investors regarding three organizations suspected of engaging in fraudulent activities related to physical assets or operating without a license. This development comes as Hong Kong aims to position itself as a crypto hub in order to create an enabling environment to drive development in the crypto space.
SFC Lists Tokencan, VBIT, HKD.com As Scam
In a press release on June 28, the Hong Kong SFC issued a fraud warning to three companies starting with Tokencan, which the Commission described as a 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 crypto trading services. However, following the investment, customers encountered problems with withdrawals and were eventually denied access to their accounts. Notably, the SFC claims that Tokencan also entered false information in its registration with the Commission.
VBIT Exchange was another entity accused by the SFC of operating as a VATP despite lacking a license from the Commission. In addition, VBIT Exchange also falsely claimed to be registered with several local authorities and jurisdictions.
Hong Kong’s SFC also warned investors of HKD.com Corporation, a company with the same logo and name as another VATP but without structures. Similar to Tokencash, investors have also reported challenges withdrawing their assets from HKD.com.
The security regulator assures all investors that enforcement measures have been taken against all the above-mentioned agencies where the police force closes all related websites and social media channels. However, advise all investors to remain vigilant and only engage with licensed trading services.
The commission reiterated to current and future VATPs the need to obtain a license before starting operations as stipulated by Hong Kong laws under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
Hong Kong’s Journey to Becoming a Crypto Hub
In addition to cracking down on fake and unregistered crypto platforms, Hong Kong continues to take steps towards creating a global hub for crypto.
In April, Hong Kong approved the launch of an Ethereum and Bitcoin exchange-traded fund (ETF). In essence, a spot ETF is an investment fund that holds assets directly. Spot crypto ETFs allow investors to gain direct exposure to asset price movements and are an important step in the mainstream adoption of physical assets.
In addition, Bitcoinist reported that the Hong Kong Institute for Monetary and Financial Research has conducted a government-sponsored study on fixed currencies and the Metaverse as the island nation aims to break new boundaries in these two key areas of the crypto space.
Featured image from NW Flags, chart from Tradingview
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