Hong Kong Securities and Futures Commission Warns Public About Staking Products
The Hong Kong Securities and Futures Commission (SFC) has issued a warning to the public regarding two staking products associated with the Floki protocol. The SFC described both the “Floki Staking Program” and the “TokenFi Staking Program” as “suspicious” and emphasized that they have not received authorization in Hong Kong.
Staking and Its Risks
Staking is a method for cryptocurrency holders to earn rewards by supporting blockchain operations. However, the SFC has raised concerns about the Floki protocol’s ability to achieve high annualized returns with its staking programs. As a result, the products have been added to the SFC’s Suspicious Investment Products Alert List.
The SFC also cautioned investors about the risks associated with “staking” arrangements tied to digital assets, which could potentially result in unauthorized collective investment schemes. Investors were advised to be cautious of investment products promising unrealistic returns.
SFC’s Commitment to Protecting Investors
The SFC reiterated its commitment to ensuring regulatory standards are met and protecting the Hong Kong public from fraudulent schemes.
Floki Team Responds to Claims
The Floki team addressed the SFC’s statements in a weekly recap on the X platform. While not disclosing much information about their conversations with the regulator, they mentioned collaborating with a marketing agency for promotions of their staking products. The team believed they had received approval after securing media space through the agency.
The Floki team acknowledged uncertainty regarding future marketing campaigns in Hong Kong but promised to comply with regulatory requirements.
Hot Take: SFC Warns About Suspicious Staking Products
The Hong Kong Securities and Futures Commission has issued a warning about two staking products associated with the Floki protocol. These products, named the “Floki Staking Program” and the “TokenFi Staking Program,” have not received authorization in Hong Kong and are considered suspicious. The SFC cautioned investors about the risks involved in staking arrangements tied to digital assets, emphasizing the importance of being cautious when making investment decisions. The Floki team responded to the claims, stating their collaboration with a marketing agency and promising to fulfill regulatory requirements. The SFC remains committed to protecting investors and maintaining regulatory standards in Hong Kong.
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