The Securities and Futures Commission (SFC) of Hong Kong warns of suspected fraud involving crypto entities
The Securities and Futures Commission (SFC) of Hong Kong has issued a warning regarding potential fraud associated with crypto entities Hong Kong Digital Research Institute and BitCuped. The SFC stated that the Hong Kong Police Force had taken action to block access to the websites of these entities, as they were believed to be deceiving users into making fraudulent investments. Cease-and-desist letters were also sent to the operators of these websites.
The SFC suspects that HongKongDAO may be spreading false and misleading information about its business through online channels. BitCuped, for example, falsely claims on its website that individuals like ‘Laura Cha’ and ‘Nicolas Aguzin’ are affiliated with the company when they are not.
False information leading to illegitimate investments
The SFC warns that the misleading information provided by HongKongDAO may entice individuals to believe that their services are licensed and legitimate, leading them to invest in the HKD token. It is important to note that Laura Cha and Nicolas Aguzin are executives with the Stock Exchange of Hong Kong and have no connection to BitCuped.
Upcoming changes in digital currency regulations
In October, the SFC announced its plans to update policies on digital currency sales and requirements in response to market developments and industry feedback. From June 2024 onwards, exchanges operating within Hong Kong must obtain a virtual asset service provider license from the SFC.
Hot Take: SFC Warns of Suspected Fraud Involving Crypto Entities in Hong Kong
The Securities and Futures Commission (SFC) of Hong Kong has issued a warning about suspected fraud related to crypto entities Hong Kong Digital Research Institute and BitCuped. The SFC has taken action to block access to their websites and has sent cease-and-desist letters to the operators. The SFC suspects that HongKongDAO is disseminating false and misleading information, potentially leading individuals to make illegitimate investments. It is crucial for investors to be cautious and verify the legitimacy of crypto entities before making any financial decisions. The SFC’s upcoming policy updates on digital currency sales and requirements reflect their commitment to regulating the crypto industry effectively and protecting investors.
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